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    (Figure: Simple Keynesian Model) in the Figure, Suppose Investment Has
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(Figure: Simple Keynesian Model) in the Figure, Suppose Investment Has

Question 137

Question 137

Multiple Choice

(Figure: Simple Keynesian Model) In the figure, suppose investment has increased from AE = C + I0 to AE = C + I1. The multiplier equals (Figure: Simple Keynesian Model)  In the figure, suppose investment has increased from AE = C + I<sub>0</sub> to AE = C + I<sub>1</sub>. The multiplier equals   A)  0.4. B)  0.6. C)  2.5. D)  5.


A) 0.4.
B) 0.6.
C) 2.5.
D) 5.

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