Question
.In an economy with no taxes and no imports, disposable income increases from $1,000 to $2,000. If consumption increases from $800 to $1,500, the multiplier
.In an economy with no taxes and no imports, disposable income increases from $1,000 to $2,000. If consumption increases from $800 to $1,500, the multiplier is 3.33. (True or False)
is the formula change in consumption/change in income? the answer would be false? I am not sure I have the correct formula.
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Essentials of Economics
Authors: Bradley Schiller, Karen Gebhardt
10th edition
125923570X, 978-1259235702
