Question calculate the multiplier for the following cases, Ask an Expert

Economics

Question: Calculate the multiplier for the following cases. Assume that the MPC value as given shows the value as a portion of national income, not disposable income.

a. MPC = 0.9, MPM = 0.2, Tax rate = 0.1

b. MPS = 0.2, MPM = 0.0, Tax rate = 0.3

c. MPS = 0.1, MPM = 0.4, Tax rate = 0.2

d. What happens to the multiplier as a country imports a larger proportion of its income?

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M92587219

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