Calculate the change in consumption ( C) and change in income ( Y) using two consecutive data points from the table.
Geography
ScanSolve AI Answer
Answer
Step-by-step solution
3 stepsTo find the value of the multiplier, we first need to calculate the Marginal Propensity to Consume (MPC). The multiplier is then calculated using the formula .
Calculate the change in consumption () and change in income () using two consecutive data points from the table.
Let's use the data points where income changes from 200:
When income () is C_1164.
When income () is C_2180.Calculate the Marginal Propensity to Consume (MPC).
Calculate the multiplier using the MPC.
The value of the multiplier is 5.0.
The final answer is .
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