If Planned Aggregate Expenditure in an Economy Can Be Written

question 161

Multiple Choice

If planned aggregate expenditure in an economy can be written as: PAE = 1,000 + 0.5Y,what is the income-expenditure multiplier in this economy?

• A) 0.1.
• B) 0.9.
• C) 1.1.
• D) 9.0.
• E) 2.0.

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