Based on the figure, the income-expenditure multiplier in the economy illustrated equals:

Question

Based on the figure, the income-expenditure multiplier in the economy illustrated equals:

A. 0.6

B. 2.5

C. 5

D. 1,000

E. 2,500

Answer 1

Unfortunately there is no figure provided, but multiplier is usually the slope of AE curve in Keynesian cross diagram, it is also positive, usually less than 50 and more than 1, thus depending on slope multiplier will be 2.5 or 5.

So answer could be "B" or "C"

Added:

I've seen the same task - with relevant graph - right answer there was "B". 2.5.