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If we observe that every increase in income of $120 million generates an increase in consumption of $80 million, then the simple multiplier is A)2/3. B)3/2. C)2 D)3 E)8

If we observe that every increase in income of $120 million generates an increase in consumption of $80 million, then the simple multiplier is A)2/3. B)3/2. C)2 D)3 E)8

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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192 / 215 Question If we observe that every increase in income of $120 million generates an increase in consumption of $80 million, then the simple multiplier is A)2/3. B)3/2. C)2 D)3 E)8
Transcribed Image Text:192 / 215 Question If we observe that every increase in income of $120 million generates an increase in consumption of $80 million, then the simple multiplier is A)2/3. B)3/2. C)2 D)3 E)8
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