Consider a Simple Macro Model with a Constant Price Level

question 50

Multiple Choice

Consider a simple macro model with a constant price level and demand-determined output.The equations of the model are: C = 60 + 0.43Y,I = 150,G = 260,T = 0,X = 90,IM = 0.06Y.The value of the simple multiplier in this model is

• A)0.37.
• B)1.59.
• C)2.04.
• D)2.32.
• E)2.70.

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