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Author Question: Economists think that the marginal propensity to consume for the U.S. economy is somewhere around ... (Read 120 times)

Pea0909berry

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on: Mar 16, 2019

Question 1

What is the formula for the multiplier? Explain why this formula is considered to be too simple.



Question 2

Economists think that the marginal propensity to consume for the U.S. economy is somewhere around 0.9. Based on our simple multiplier formula, this would imply that the multiplier for the United States should be around 10. However, economists agree that the spending multiplier is closer to 2. What might explain this supposed anomaly?

Macroeconomics ¦ Hubbard, O'Brien ¦ 6th Edition
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Marked as best answer by Pea0909berry on Mar 16, 2019

lou

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Reply #1 on: Mar 16, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Pea0909berry

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Reply #2 on: Mar 16, 2019
Thanks


lou

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Reply #3 on: Mar 16, 2019
Welcome :)


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