If Planned Aggregate Expenditure in an Economy Can Be Written

question 28

Multiple Choice

If planned aggregate expenditure in an economy can be written as: PAE = 5,000 + 0.6Y,what is the income-expenditure multiplier in this economy?

• A) 0.2.
• B) 0.8.
• C) 2.5.
• D) 4.0.
• E) 5.0.

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Definitions:

Initial Allocation

The initial distribution of resources, goods, or assets among participants in an economy or market.

Inadvertent Breach

An unintentional failure to fulfill a contractual obligation or violation of a law, often due to oversight or misunderstanding.

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The legal ethical requirement that lawyers maintain the knowledge, skill, and ability to provide competent representation to their clients.

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