Suppose the Price Level Is Constant, Output Is Demand- Determined

question 9

Multiple Choice

Suppose the price level is constant, output is demand- determined, and the economy is closed with no government. If the consumption function is C = (1/2) Y, the simple multiplier is

• A)2/3.
• B)1.
• C)2.
• D)3.
• E)- insufficient information to know.

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