Suppose the Price Level Is Constant,output Is Demand-Determined,and the Economy

question 61

Multiple Choice

Suppose the price level is constant,output is demand-determined,and the economy is closed with no government.If the saving function is S = -100 + (0.4) Y,the simple multiplier is

• A)0.2.
• B)1.
• C)2.5.
• D)5.
• E)Insufficient information to know.

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