Let C = 300 + 0.9y and I = 125. The value of the multiplier is
A) 0.9. B) 9. C) 10. D) 27.
Question 2
Which of the following is true?
A) The gap between the income per capita of U.S and the income per capita of poorer countries is small when exchange rate-based measures are used.
B) The gap between the income per capita of U.S and the income per capita of poorer countries is large when PPP-based measures are used.
C) Exchange rate-based measures of income per capita are identical to PPP-based measures.
D) Exchange rate-based measures of income per capita differ from PPP-based measures of income per capita.
