Ayushi posted an Question
August 11, 2020 • 22:34 pm 30 points
  • UGC NET
  • Economics

67. the government expenditure multiplier in a 3 sector economy is given by: k ay (1) k ag"1-e+ct 1 (2) ag 1-c 1 (3 k 4y (4 none of the above ag 1-c+ct t 68. if

67. The government expenditure multiplier in a 3 sector economy is given by: K AY (1) K AG"1-e+ct 1 (2) AG 1-c 1 (3 K 4Y (4 None of the Above AG 1-c+ct T 68. If no foreign companies produce in a country, but marny of the cOuntry's coinpanies produce abroad, then (1) The country's GNP> GDP (2) The country's GNP < GDP (3) The country's GNP and GDP will tend to be equal (4) None of the above

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    Nidhi taparia Best Answer

    67. The correct answer is option (1). Government expenditure multiplier is equal to 1/(1-c+ct) where c = mpc t = proportional tax rate

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