Ayushi Asked a Question
August 11, 2020 5:04 pmpts 30 pts
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
  • 1 Answer(s)
  • 0 Likes
  • 1 Comments
  • Shares
  • 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
    Likes(0) Reply(0)