Y = a + ß (Y-T) + I + G
Y = a + ßY – ß (to +t1Y) + I + G
Y = a + ßY – ßto - ßt1Y + I + G
Y – ßY + ßt1Y = a - ß to + I + G
(1 – ß + ßt1) Y = a - ß to + I + G
Y = 1/ (1 – ß + ßt1) * a – ßt0 + I + G
The multiplier is
Y = 1/ (1 – ß (1 - t1))
Dana05 answered the question on July 18, 2019 at 20:01
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