Business, 23.03.2020 22:33 boo6931

In a certain economy, when income is $200, consumer spending is $145. The value of the multiplier for this economy is 6.25. It follows that, when income is $230, consumer spending is.

A. $166.75. For this economy, an initial impulse of $10 in consumer spending translates into a $62.50 increase in aggregate demand.
B. $166.75. For this economy, an initial impulse of $10 in consumer spending translates into a $66.75 increase in aggregate demand.
D. $170.20. For this economy, an initial impulse of $10 in consumer spending translates into a $62.50 increase in aggregate demand..
C. $170.20. For this economy, an initial impulse of $10 in consumer spending translates into a $70.20 increase in aggregate demand.

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In a certain economy, when income is $200, consumer spending is $145. The value of the multiplier fo...

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