Answer to Question #210805 in Macroeconomics for Hobbs

Question #210805

If 𝐶̅ = R20 billion, I = R30 billion, G = R25 billion, X = R15 billion, Z = R12 billion, c = 0.75 and t = 0.20

The value of the multiplier is …

[1] 4.0

[2] 3.5

[3] 2.0

[4] 2.5

The equilibrium level of income is …

[1] 195

[2] 312

[3] 156

[4] 273

Expert's answer

4.0
312

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