Explore BrainMass

Explore BrainMass

    the value of the simple multiplier.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Use the information in the table to calculate the value of the simple multiplier for the following economy.

    Year Income(Y) Consumption (C) Savings (S) Investment (I)
    (m) (m) (m) (m)
    1 200 160 40 150
    2 300 220 80 150
    3 400 280 120 150

    © BrainMass Inc. brainmass.com October 10, 2019, 2:59 am ad1c9bdddf

    Solution Preview

    The simple multiplier can be found from the MPC (marginal propensity to consume). So, we ...

    Solution Summary

    The value of the simple multiplier is carefully detemined.