Given that Y = C + I and C = bY where b = 0.8, what is the multiplier?

musayusufyunusa

5 years ago

Y=C+I
C=by
where,
k is denoted as multiplier
b is denoted as MPC
Y is denoted as income
I is denoted as Investment
C is denoted as consumption
K=1/1-MPC
K=1/1-0.8
K=1/0.2
K=5

Sandralili

9 years ago

Please show solving don't really understand

Ejemba11

3 years ago

pls you guys should show solving