If investment increases by $150 and, in response, equilibrium expenditure rises by $600,
A. the multiplier is 0.25.
B. the multiplier is 4.0.
C. the MPC is 4.
D. the slope of the AE curve is 3.0.
Answer:B
If investment increases by $150 and, in response, equilibrium expenditure rises by $600,
A. the multiplier is 0.25. B. the multiplier is 4.0. C. the MPC is 4. D. the slope of the AE curve is 3.0.