In a Simple Macro Model with Demand- Determined Output, the Simple

question 40

Multiple Choice

In a simple macro model with demand- determined output, the simple multiplier is equal to 1/(1- z) , where z equals the

• A)average propensity not to spend.
• B)level of autonomous expenditure.
• C)marginal propensity not to spend.
• D)average propensity to spend.
• E)marginal propensity to spend.