Suppose the Price Level Is Constant,output Is Demand-Determined,and the Economy

question 61

Multiple Choice

Suppose the price level is constant,output is demand-determined,and the economy is closed with no government.If the saving function is S = -100 + (0.4) Y,the simple multiplier is

• A)0.2.
• B)1.
• C)2.5.
• D)5.
• E)Insufficient information to know.

---

Definitions:

Introduction

The beginning section of a document, speech, or book that provides an overview of the content that follows.

Logical

Pertaining to clear, structured, and reasoned thinking or argumentation.

Essential Information

Essential information refers to the critical and necessary data or facts that are required to understand a topic, make a decision, or complete a task.

Organize

To arrange or put in order; to structure systematically.