In a Certain Economy,when Income Is $400,consumer Spending Is $325

Multiple Choice

In a certain economy,when income is $400,consumer spending is $325.The value of the multiplier for this economy is 3.33.It follows that,when income is $450,consumer spending is

A) $360.For this economy,an initial increase of $50 in consumer spending translates into a $266.67 increase in aggregate demand.
B) $360.For this economy,an initial increase of $50 in consumer spending translates into a $166.50 increase in aggregate demand.
C) $341.67.For this economy,an initial increase of $50 in consumer spending translates into a $266.67 increase in aggregate demand.
D) $341.67.For this economy,an initial increase of $50 in consumer spending translates into a $166.25 increase in aggregate demand.