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If Planned Aggregate Expenditure in an Economy Can Be Written

Question 28

Multiple Choice

If planned aggregate expenditure in an economy can be written as: PAE = 5,000 + 0.6Y,what is the income-expenditure multiplier in this economy?

A) 0.2.
B) 0.8.
C) 2.5.
D) 4.0.
E) 5.0.

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