Trusted by millions of Kenyans
Study resources on Kenyaplex

Get ready-made curriculum aligned revision materials

Exam papers, notes, holiday assignments and topical questions – all aligned to the Kenyan curriculum.

Derive the multiplier with government spending

Derive the multiplier with government spending

Answers


Dana
Y = a + ß (Y-T) + I + G
Y = a + ßY – ßT + I + G
Y – ßY = a - ßT + I + G
(1 – ß) Y = a - ßT + I + G
Y = 1/ (1 – ß) * a - ßT + I + G
?Y/?G = 1/ (1 – ß)

Dana05 answered the question on July 18, 2019 at 19:58

Answer Attachments

Exams With Marking Schemes

Related Questions