The following table illustrates the multiplier process in a private closed economy:

-Refer to the above table.The total change in income resulting from the initial change in investment will be:
A) $100
B) $20
C) $80
D) $200

Question

The following table illustrates the multiplier process in a private closed economy:
 
-Refer to the above table.The total change in income resulting from the initial change in investment will be:
A) $100 
B) $20 
C) $80 
D) $200

Quizplus · Accepted Answer

The initial change in investment is $100. The multiplier is 2. Therefore, the total change in income will be $100 x 2 = $200.

The Following Table Illustrates the Multiplier Process in a Private