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Answer the Question on the Basis of the Following Information

Question 62

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Answer the question on the basis of the following information for a private closed economy:  Gross Domestic Product  Consumption $100$100200160300220400280500340600440 Expected Rate of Return  Amount of Investment 15%$01240980612031600200\begin{array}{l}\begin{array} { c c } \underline{\text { Gross Domestic Product } }& \underline{\text { Consumption } }\\\$100& \$ 100 \\200 & 160 \\300 & 220 \\400 & 280 \\500 & 340 \\600 & 440\end{array}\\\begin{array} { c c c } \underline{\text { Expected Rate of Return }} & \underline{\text { Amount of Investment }} \\15 \% & \$ 0 \\12 & 40 \\9 & 80 \\6 & 120 \\3 & 160 \\0 & 200\end{array}\end{array} Refer to the information.The multiplier in this economy is:


A) 4.
B) 5.
C) 2.5.
D) 3.5.

Correct Answer:

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