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SashulF [63]
3 years ago
10

The formula

\frac{D}{1-h}" align="absmiddle" class="latex-formula"> is used in economics to determine the impact on Gross Domestic Product (GDP) X by increasing government spending by D dollars if the proportion of additional income that people spend is h.
(a) Solve the formula for h.
(b) Find h if the government increased spending by $400 billion and GDP increased by $4000 billion.
Mathematics
1 answer:
Debora [2.8K]3 years ago
3 0
X = D/(1 - h)
1 - h = D/x
h = 1 - D/x

D = 400, X = 4000
h = 1 - 400/4000
h = 1 - 0.1 = 0.9
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