Suppose an Economy Can Be Described by the Consumption Function

question 55

Multiple Choice

Suppose an economy can be described by the consumption function C = 75 + 0.80Y_D and I = $50.What is the multiplier?

• A)0.20.
• B)0.80.
• C)5.
• D)1.25.

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Definitions:

Soviet Union

A socialist state that existed from 1922 to 1991, officially known as the Union of Soviet Socialist Republics (USSR), comprising multiple subnational Soviet republics.

United Nations

An international organization founded in 1945 to promote peace, security, and cooperation among countries worldwide.

Diplomacy

The management of international relations by negotiation and dialogue between countries.

Nuclear Proliferation

The spread of nuclear weapons and technology to nations not recognized as Nuclear Weapon States by the Treaty on the Non-Proliferation of Nuclear Weapons.