FIGURE 23-5 -Refer to Figure 23-5.Suppose That an Increase in Government Purchases

question 65

Multiple Choice

FIGURE 23-5
-Refer to Figure 23-5.Suppose that an increase in government purchases caused the AD curve to shift to the right,as shown.If the simple multiplier in this model is 4,then what is the value of the multiplier?

• A)1.2
• B)1.4
• C)4
• D)2.8
• E)3.2