Use the figure below to answer the following question.
Figure 11.3.2
-In Figure 11.3.2, the multiplier is
A)10.
B)1.00.
C)0.25.
D)2.50.
E)1.60.

Question

Use the figure below to answer the following question.
  Figure 11.3.2
-In Figure 11.3.2, the multiplier is
A)10. 
B)1.00. 
C)0.25. 
D)2.50. 
E)1.60.

Quizplus · Accepted Answer

The multiplier is calculated as follows: Total change in spending / Initial change in spending. In this case, the total change in spending is $500 billion and the initial change in spending is $200 billion. Therefore, the multiplier is 2.50.

Use the Figure Below to Answer the Following Question