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

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter17: Financial Markets
Section: Chapter Questions
Problem 30CTQ: Explain how a company can fail when the safeguards that should be in place fail.
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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
Transcribed Image Text: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
Transcribed Image Text: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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