In a closed economy with no government sector, investment stands at $5 million, equilibrium income is $22 million, full employment income is $25 million, and the deflationary gap is $1 million. What may be inferred from this information?
- AThe marginal propensity to consume is 3/2.
- BThe marginal propensity to consume is 3/1.
- CThe value of the investment multiplier is 5.
- DThe value of the investment multiplier is 1.5.