Multiple Choice
If a $50 billion decrease in investment spending causes income to decline by $50 billion in the first round of the multiplier process and by $25 in the second round, the multiplier in the economy is
A) 2.
B) 3.33.
C) 5.
D) 10.
Correct Answer:

Verified
Correct Answer:
Verified
Q179: The fraction, or percentage, of total income
Q180: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8601/.jpg" alt=" Refer to the
Q181: If the consumption schedule is a straight
Q182: Personal saving is equal to<br>A) disposable income
Q183: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8601/.jpg" alt=" Refer to the
Q185: The size of the multiplier is equal
Q186: The investment demand curve portrays an inverse
Q187: If consumption increases while income remains the
Q188: The multiplier is equal to the reciprocal
Q189: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8601/.jpg" alt=" Refer to the