Answer to Question #147871 in Macroeconomics for Harry

Question #147871

C = 450 + 0.4Y
I = 350

G = 150
X = 70
Z = 35 + 0.1Y
T = 0.15Y
Yf = 1550

Q.2.2 Calculate the size of the multiplier
(Note: Round your answer to two decimal places)
(4)

Expert's answer

Q=1/1-c(1-t)+x

Q=1/1-0.4(1-0.15)+0.1

Q=1.32

Therefore the size of the multiplier is 1.32

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