If a $20 increase in disposable income causes consumer spending to rise by $4, what is the multiplier?

MACROECONOMICS
14th Edition
ISBN:9781337794985
Author:Baumol
Publisher:Baumol
Chapter11: Managing Aggregate Demand: Fiscal Policy
Section11.A: Graphical Treatment Of Taxes And Fiscal Policy
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If a $20 increase in disposable income causes consumer
spending to rise by $4, what is the multiplier?
Transcribed Image Text:If a $20 increase in disposable income causes consumer spending to rise by $4, what is the multiplier?
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