Your New Government have decided to construct a new college campus for Providenciales students. They estimate it will cost a total $200M.

Calculate the value of the multiplier taking into consideration the following and estimate the rise in GDP.

i) Initial investment $200m

ii) Marginal Property to save = 0.2

iii) Marginal rate of tax income = 0.2

iv) Marginal propensity to import goods and services = 0.4