Compared to a country with an MPS of 0.05, a country with an MPS of 0.2 would have to change government expenditures by as much to have the same impact on real GDP.
Compared to a country with an MPS of 0.05, a country with an MPS of 0.2 would have to change government expenditures by as much to have the same impact on real GDP.
answer; /// the best answer to the above question is; the main economic goal that a society consider when deciding the best way to distribute its wealth is equity, this to ensure that all resources are equally distributed; ///(a) (economic equity)
Four times.
Explanation:
Based on the information given, the government expenditure multiplier in this case goes thus:
K = ∆Y/∆G = 1/1-MPC = 1/MPS
For the first country with a MPS of 0.05, K = 1/MPS = 1/0.05 = 20
For the first country with a MPS of 0.2, K = 1/MPS = 1/0.2 = 5
Therefore, 20/5 = 4.
Therefore, the answer is four times.
b $274.07
step-by-step explanation:
you just devide 222 by 0.81