86.Refer to the figure above. Based on the figure, the income-expenditure multiplier in theeconomy illustrated equals:A. 0.75B. 4C. 4,0000.1,000 PAEY* PAEPAE 6,000 75YPAE 6,000 75YPAE 4,000 75Y6,0005.0004,00016 20Frank Chapter 21

Use below formula to find the spending multiplier:Spending multiplier=1MPS

Answered: Refer to the figure above. Based on the…

Refer to the figure above. Based on the figure, the income-expenditure multiplier in the economy illustrated equals: A. 0.75

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

86.
Refer to the figure above. Based on the figure, the income-expenditure multiplier in the
economy illustrated equals:
A. 0.75
B. 4
C. 4,000
0.1,000

PAE
Y* PAE
PAE 6,000 75Y
PAE 6,000 75Y
PAE 4,000 75Y
6,000
5.000
4,000
16 20
Frank Chapter 21

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