Answer to Question #271499 in Macroeconomics for Priscilla

Question

Determine multiplier

C=120billion+ 0.8Yd, 1= R150 billion

Answer 1

$$MPC={ \delta C\over\delta Y}$$

$$C=120 billion+0.8Yd$$

$$=0.8$$

$$Multiplier ={1\over 1-MPC}$$

$$Multiplier ={1\over 1-0.8}$$

$$=5$$