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(2) Short Multiplier Questions a) Assume a city knows that its long-term income multiplier equals 2.75. What is the implicit m? (be precise down to 4 decimals) b) True or false? Do not explain. If AX>0 and m=0, the change in income AY will always be zero too. c) If m=0.5 and AX-20,000 what is AY after 3 time periods. Assume that AX occurs in time period zero. What is the income multiplier after 3 time periods?

(2) Short Multiplier Questions a) Assume a city knows that its long-term income multiplier equals 2.75. What is the implicit m? (be precise down to 4 decimals) b) True or false? Do not explain. If AX>0 and m=0, the change in income AY will always be zero too. c) If m=0.5 and AX-20,000 what is AY after 3 time periods. Assume that AX occurs in time period zero. What is the income multiplier after 3 time periods?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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(2) Short Multiplier Questions a) Assume a city knows that its long-term income multiplier equals 2.75. What is the implicit m? (be precise down to 4 decimals) b) True or false? Do not explain. If AX>0 and m=0, the change in income AY will always be zero too. c) If m=0.5 and AX=20,000 what is AY after 3 time periods. Assume that AX occurs in time period zero. What is the income multiplier after 3 time periods?
Transcribed Image Text:(2) Short Multiplier Questions a) Assume a city knows that its long-term income multiplier equals 2.75. What is the implicit m? (be precise down to 4 decimals) b) True or false? Do not explain. If AX>0 and m=0, the change in income AY will always be zero too. c) If m=0.5 and AX=20,000 what is AY after 3 time periods. Assume that AX occurs in time period zero. What is the income multiplier after 3 time periods?
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