HSC M/C qn (1 Viewer)

amberbambi

Member
Joined
Apr 22, 2015
Messages
47
Gender
Undisclosed
HSC
N/A
Could someone please explain the reasoning/logic behind this question? This was from the 2010 HSC economics paper.

(question attached) Thank you. Multiplier Qn.png
 

shashysha

Well-Known Member
Joined
Jun 24, 2020
Messages
287
Gender
Male
HSC
2020
Here you should use the multiplier formula of k=1/MPS. Note that income (Y) can be given by Y=C+S. You can work out MPS by change in savings / change in income which should give MPS=0.5. The multiplier is 1/MPS = 1/0.5 which would equal 2 so it's D.
 

Users Who Are Viewing This Thread (Users: 0, Guests: 1)

Top