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The cost of rebuilding the Philippines aftertyphoon Haiyan could reach USD 5.8bn, a senior official has said. Assume the government of Australia Department of Foreign
- The cost of rebuilding the Philippines aftertyphoon Haiyan could reach USD 5.8bn", a senior official has said. Assume the government of Australia Department of Foreign Affairs and Trade provided a grant of USD 5.8 billion. Also assume that despite the hardships the Philippine families experienced, 15% was the beneficiary savings from the Australian grant. Further, assume all other factors remain constant.
- Calculate the total effect of the spending multiplier of the Australian government grant on the Philippine economy GDP growth. (2 marks)
- Examine the overall multiplier effect of the USD5.8 billion grant on thePhilippine economy. (2 marks)
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