if a $235 increase in investment spending creates $235 of new income in the first round...
if a $235 increase in investment spending creates $235
of new income in the first round of multiplier process and $96 in
the second round, what is the multiplier in this economy?
round to the nearest second decimal.
Homework Answers
The multiplier in the economy would be = (Total change in the income)/Total change in the investment spending = (235+96)/235=1.4085
So, the answer would be 1.41
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if a $235 increase in investment spending creates $235
of new income in the first round...
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