In a closed economy with government, the marginal propensity to consume is 0.5 and the tax rate is 0.2. Calculate the multiplier. Answer the question by providing the appropriate number including at least 2 decimal points in the box below (e.g., 1.23). Do not enter a comma, space, letters, words or symbols (such as %). Failure to follow these instructions will result in your answer being marked as incorrect.

In a closed economy with government, the marginal propensity to consume is 0.5 and the tax rate is 0.2. Calculate the multiplier. Answer the question by providing the appropriate number including at least 2 decimal points in the box below (e.g., 1.23). Do not enter a comma, space, letters, words or symbols (such as %). Failure to follow these instructions will result in your answer being marked as incorrect.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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