Homework Sourse500 The table illustrates the multiplier process resulting f
$5.00
The table illustrates the multiplier process resulting from an autonomous increase in investment by $5. The change in income in round two will be
A. $0.94.
B. $4.00.
C. $2.81.
D. $3.75.
2. Answer the question on the basis of the following five data sets, wherein it is assumed that the variable shown on the left is the independent variable and the one on the right is the dependent variable. Assume in graphing these data that the independent variable is shown on the horizontal axis and the dependent variable on the vertical axis.
Refer to the data sets. The vertical intercept is negative for
A. data sets 1 and 5 only.
B. data sets 1 and 3 only.
C. data sets 2 and 4 only.
D. none of the data sets.
| Change in Income | Change in Consumption | Change in Saving | |
| Assumed Increase in Investment | $5.00 | $ | $1.25 |
| Second Round | $ | $2.81 | $ |
| All Other Rounds | $ | $8.44 | $ |
| Totals | $ | $ | $5.00 |
Solution
Ans
1 it\'s is simply equal to consumption in first period. So =5-1.25=3.75
2 data set 2 and 4 only as shown by second columns
