Consider a Simple Macro Model with Demand-Determined Output

question 138

Multiple Choice

Consider a simple macro model with demand-determined output.If z is the marginal propensity to spend out of national income,Y is national income and A is autonomous expenditure,then the simple multiplier is equal to

• A)z.
• B)1 - z.
• C)1/z.
• D)1/(1 - z).
• E)Y/(1 - z).

---

Definitions:

Effective Title

A title that accurately reflects the content, purpose, and tone of the work, capturing the reader's interest.

Executive Summary

A concise overview of a larger document or report, emphasizing the key points, findings, or recommendations.

Critical Analysis

The systematic evaluation of an issue or object in order to form a judgment.

Topic Interpretation

Topic interpretation involves analyzing and understanding the meaning or significance of a particular subject or area of discussion.