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label Economics
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account_balance_wallet $5

Oct 18th, 2017

1) MPC=0.9

2) MPS=1-0.9=0.1

3) Y= C+I

  Y=100+0.9Y+I

   0.1Y=100+300=400

  Y=$4000


4) Investment multiplier (K)

C=100+0.9Y

Y-I=100+0.9Y

Y=1000+10I

K=delY/del I = 10

5) 

Y= C+I

  Y=100+0.9Y+I

0.1Y = 100+305=405

Y = $4050

Mar 31st, 2015

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