Use the Information Below to Answer the Following Questions

question 122

Multiple Choice

Use the information below to answer the following questions.
Fact 27.5.1
The economy of Beverly Hills has a consumption function of C = 10 + 0.8Y, investment equal to 6, government expenditure equal to 10, exports equal to 10, and an import function of M = 0.1Y.
-Refer to Fact 27.5.1. What is the multiplier for this economy?

• A)1.43
• B)3.33
• C)0.3
• D)10
• E)5

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