If disposable income is 90 percent of national income, the marginal propensity to consume ( out of disposable income) is 0.75, and imports are 25 percent of national income. What is the simple multiplier?

If disposable income is 90 percent of national income, the marginal propensity to consume ( out of disposable income) is 0.75, and imports are 25 percent of national income. What is the simple multiplier?

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter10: Income And Expenditures Equilibrium

Section: Chapter Questions

Problem 1E

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Definition Definition Monetary value of all goods and services produced in an economy during a financial year. National income also refers to the total income earned by the factors of production during a financial year.

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