Suppose C = 100 + 0

question 177

Multiple Choice

Suppose C = 100 + 0.6(Y - T) and T = 200,I = 140,G = 250 and NX = 50 - 0.2Y.The income-expenditure multiplier is equal to

• A) 0.60.
• B) 1.12.
• C) 1.20.
• D) 1.33.
• E) 1.67.

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Definitions:

Operational Support

Assistance provided to ensure the smooth functioning and maintenance of daily operations within an organization.

Company Name

The legally registered title under which a corporation operates its business.

Direct Cross-Subsidies

A financial practice where the revenue from one product or service directly supports another within the same company, often to maintain competitive pricing or support strategic objectives.

Above Market Rates

Compensation or prices that exceed the average or expected standard within a specific industry or market.