Consider the Following Information for an Economy with Demand-Determined Output

question 72

Multiple Choice

Consider the following information for an economy with demand-determined output and a constant price level.There is no government or foreign trade. TABLE 21-8 Refer to Table 21-8.The simple multiplier in this economy is

• A)2.0.
• B)2.5.
• C)3.0.
• D)4.0.
• E)5.0.

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Definitions:

Retail Outlets

Physical stores operated by retailers to sell merchandise directly to consumers.

Construction Supplies

Materials and goods used in the building and construction industry.

Costs of Debt

The effective rate that a company pays on its total debt, including interests and fees.