If the Value of the Multiplier in a Closed Economy

question 99

Multiple Choice

If the value of the multiplier in a closed economy with no government sector is equal to 5, then which of the following is true?

• A) The level of output of goods and services in the economy will equal 100.
• B) The marginal propensity to consume in the economy will be equal to 0.4.
• C) The level of investment in the economy will be equal to 400.
• D) The marginal propensity to save in the economy will be equal to 0.2.

---

Definitions:

Site

A location or place, often referring to a specific area within the body or an environment.

Rhabdomyoma

A benign tumor of striated muscle tissue.

Striated Muscle

A type of muscle tissue that has repeating sarcomeres, giving it a striped appearance, and is typically involved in voluntary movements.

Tumor

Tissue that becomes an abnormal lump due to cells dividing more than necessary or not dying as they should.