If the Economy Is Initially Suffering from a Recessionary Gap

Multiple Choice

If the economy is initially suffering from a recessionary gap equal to 50 units and the marginal propensity to consume is 0.9,then the income-expenditure multiplier is equal to _________,so if net exports rise by _________ units,the economy will return to potential output.

A) 0.9;56
B) 9;50
C) 9;5
D) 10;50
E) 10;5