Use the Information Below to Answer the Following Questions

question 79

Multiple Choice

Use the information below to answer the following questions.
Fact 27.3.1
An economy has a fixed price level, no imports, and no income taxes. MPC is 0.5 and real GDP is $200 billion. Businesses increase investment by $2 billion.
-Consider Fact 27.3.1. The multiplier is

• A)0.5.
• B)2.0.
• C)2.5.
• D)0.75
• E)0.8.

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Definitions:

Assignable

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Capable of being entrusted or assigned to another person, typically referring to duties or responsibilities that can be transferred to others.

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A garment traditionally worn by brides during their wedding ceremony.