In a Certain Economy,when Income Is $1000,consumer Spending Is $800

Multiple Choice

In a certain economy,when income is $1000,consumer spending is $800.The value of the multiplier for this economy is 2.5.It follows that,when income is $1020,consumer spending is

A) $816.For this economy,an initial increase of $100 in consumer spending translates into a $250 increase in aggregate demand.
B) $816.For this economy,an initial increase of $100 in consumer spending translates into a $400 increase in aggregate demand.
C) $812.For this economy,an initial increase of $100 in consumer spending translates into a $250 increase in aggregate demand.
D) $812.For this economy,an initial increase of $100 in consumer spending translates into an $800 increase in aggregate demand.