Under equation C= a+by, b=0.6, what is the value of 2 sector expenditure multiplier?

CA Foundation · Business Economics · MTP · June 2024
Under equation C= a+by, b=0.6, what is the value of 2 sector expenditure multiplier?
(A) A. 3.5
(B) B. 2.5
(C) C. 1.5
(D) D. 1

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. 2.5

Topics: Theory of Demand and Supply

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