Use the Information Below to Answer the Following Questions

question 157

Multiple Choice

Use the information below to answer the following questions.
Fact 27.5.2
The economy of Tinseltown has a consumption function of C = 15 + 0.7Y , investment equal to 8, government expenditure equal to 12, exports equal to 20, and an import function of M = 0.2Y.
-Refer to Fact 27.5.2. What is the multiplier for this economy?

• A)0.5
• B)3.33
• C)10
• D)2
• E)1

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City Council

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