Question: 39 The Keynesian consumption function is C = 15 + 0:6Y ;combined with C + 10 = Y (I = 10), an increase in governmentspending

39 The Keynesian consumption function is C = 15 + 0:6Y ;combined with C + 10 = Y (I = 10), an increase in governmentspending causes Y to rise by a multiplier of

a. 1.5.

b. 2.0.

c. 2.5.

d. 0.

59 If income is the "interest áow" on Wealth, then

a. income is greater than Wealth;

b. income is equal Wealth;

c. income is less than Wealth;

d. income is unrelated to Wealth.

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