An economy has no imports and no taxes. The marginal propensity to save is

0.4.

By how much must autonomous expenditure increase to increase equilibrium expenditure by $60 billion? What is the multiplier?

Question content area bottom

Part 1

A _______ increase in autonomous expenditure increases equilibrium expenditure by $60 billion.

The multiplier is _______.

A.

$38

billion; 24

B.

$24

billion; 2.50

C.

$150

billion; 2.50

D.

$96

billion;