Suppose Aggregate Output Is Demand-Determined

question 50

Multiple Choice

Suppose aggregate output is demand-determined.Suppose a decrease in autonomous investment expenditure of $20 million reduces equilibrium national income by $50 million.The simple multiplier is equal to

• A)-2.5.
• B)-0.6.
• C)0.4.
• D)0.6.
• E)2.5.

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