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You have the following information on personal consumption expenditures (C) and disposable income (Yd for two consecutive years): Year C Yd 1 18,000 20,000 2

You have the following information on personal consumption expenditures (C) and disposable income (Yd for two consecutive years):

Year C Yd

1 18,000 20,000

2 21,000 24,000

Assume that the government injected $100 billion in year 3 and based on the above data the multiplier effect on the $100billion of "G" will product $ _______ of Total Expenditure.

a.

$133.333 billion

b.

$566.667 billion

c.

$500.000 billion

d.

$400 billion

e.

none of the above

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