Question #332890

Given a consumption function C=1 000+0,4Y with a proportional income tax rate of 40%, what is the multiplier? Round off your answer to two digits after the decimal.



O d. 2,78



O c. 2,50



O b. 1,70



a. 1,32

1
Expert's answer
2022-04-26T15:20:57-0400

k=11−MPC=1MPS=1.70.k=\frac 1{1-MPC}=\frac 1{MPS}=1.70.


Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Place free inquiry
Calculate the price
Learn more about our help with Assignments: Microeconomics

Comments

No comments. Be the first!
Our fields of expertise
Submit Your Assignment. We Can Do It.
LATEST TUTORIALS
APPROVED BY CLIENTS
The expert did excellent work as usual and was extremely helpful for me. "Assignmentexpert.com" has experienced experts and professional in the market. Thanks.
Canada #332078 on Oct 2022