Multiple Choice
-Refer to the above diagram.The sizes of the multipliers associated with changes in investment and government spending in this economy:
A) are 2.5 and 1.5 respectively.
B) are 3 and 2 respectively.
C) are both 2.5.
D) are 2 and 3 respectively.
Correct Answer:

Verified
Correct Answer:
Verified
Q4: In a private closed economy, _ investment
Q7: The letters Y,C,I<sub>g</sub>,X,and M stand for GDP,consumption,gross
Q10: The following information is consumption and investment
Q41: What is the likely result from a
Q41: The level of aggregate expenditures in the
Q43: Other things equal, if a change in
Q44: If the MPC is 2/3, the initial
Q87: In a mixed open economy, which of
Q135: If government expenditures increase by $20 billion
Q218: The economy will expand when:<br>A)actual GDP is