If we observe that every increase in income of $120 million generates an increase in consumption of $80 million, then the simple multiplier is A)2/3. B)3/2. C)2 D)3 E)8

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
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Chapter2: Mathematics For Microeconomics
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If we observe that every increase in income of $120 million generates an increase in consumption of $80 million, then
the simple multiplier is
A)2/3.
B)3/2.
C)2
D)3
E)8
Transcribed Image Text:192 / 215 Question If we observe that every increase in income of $120 million generates an increase in consumption of $80 million, then the simple multiplier is A)2/3. B)3/2. C)2 D)3 E)8
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