In an open economy with government, the marginal propensity to consume is 0.67, the tax rate is 0.2 and the marginal propensity to import is 0.35. Calculate the multiplier (to 2 decimal places). Answer the question by providing the appropriate number with decimal point 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. Multiplier =

In an open economy with government, the marginal propensity to consume is 0.67, the tax rate is 0.2 and the marginal propensity to import is 0.35. Calculate the multiplier (to 2 decimal places). Answer the question by providing the appropriate number with decimal point 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. Multiplier =

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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