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Table 101 (All Values Are in Billions of Dollars)
-Refer to Table

Question 13

Multiple Choice

Table 10.1
 Consurmpticn C=$1.0+0.75YD Irvestmernt =$1.9 Goverument purchases =$2 Net exports =$0.5 Taxes =$0 Goverument trarssfer  gayments =$0\begin{array} { | l | l | } \hline \text { Consurmpticn } & C = \$ 1.0 + 0.75 \mathrm { YD } \\\hline \text { Irvestmernt } & = \$ 1.9 \\\hline \text { Goverument purchases } & = \$ 2 \\\hline \text { Net exports } & = - \$ 0.5 \\\hline \text { Taxes } & = \$ 0 \\\hline \text { Goverument trarssfer } & \\\text { gayments } & = \$ 0\end{array}
(all values are in billions of dollars)
-Refer to Table 10.1.The value of the government purchases multiplier in this economy is


A) 0.2.
B) 0.8.
C) 5.
D) 4.

Correct Answer:

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