--%>

Multiplier for private closed economy

For private closed economy, the data of columns 1 & 2 of the below table is given. Determine multiplier in this example?

1279_Private closed economy.png

E

Expert

Verified

Since each rise of $50 billion in GDP raise aggregate expenditures by $40 billion, the MPC is .8 and so the multiplier is 5.

   Related Questions in Finance Basics

  • Q : Graphically combined transactions and

    Normal 0 false false

  • Q : Explain Merit Salary Adjustment Merit

    Merit Salary Adjustment (MSA): The cost factor resultant from the periodic raise in salaries paid to the personnel occupying authorized positions. The personnel usually receive a salary raise of 5 percent per year up to the upper sala

  • Q : Clarify retained earnings and its

    Clarify retained earnings?  Describe importance of this? Retained earnings represent the sum of all the earnings available to common stockholders of a business at the time of its entire history, minus the tota

  • Q : Derive the long-run aggregate supply

    Normal 0 false false

  • Q : Define Budget Budget : It is a plan of

    Budget: It is a plan of operation stated in terms of financial or other resource necessities for a particular period of time.

  • Q : What is Budget Change Proposal Budget

    Budget Change Proposal (BCP): It is a proposal to modify the level of service or funding sources for activities sanctioned by the Legislature, suggest new program activities not presently authorized, or to remove existing programs.

    Q : Describe Schedule 10 Schedule 10 :

    Schedule 10: (Supplementary Schedule of Appropriations): The Department of Finance control document listing all the appropriations and allocations of funds accessible for expenditure throughout the past, present, and budget years. Such documents are s

  • Q : Describe Section 1.50 Section 1.50 : It

    Section 1.50: It is a section of the Budget Act which A) Identifies a certain style and format for the codes employed in the Budget Act, B) Authorizes the Department of Finance

  • Q : Explain Supplement-Schedule 7A

    Supplement (Schedule 7A): In such documents, for precedent year, authorized positions symbolize the number of real positions filled for that year. For present year, authorized positions comprise all regular ongoing positions accepted in the Budget Act

  • Q : Determine per unit cost of production

    Normal 0 false false