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IgorLugansk [536]
3 years ago
9

If a $200 billion increase in investment spending creates $200 billion of new income in the first round of the multiplier proces

s and $160 billion in the second round, the multiplier in the economy is:
Mathematics
1 answer:
telo118 [61]3 years ago
5 0
The multiplier would be 4, I believe so.
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Explanation:

List out the factors of 120 until we hit a gap

1,2,3,4,5,6,8

Note that 7 is not shown above. We can see that 120/7 = 17.14 approximately meaning that 7 doesn't go evenly into 120. So this is why 7 isn't a factor. Something like 3 is a factor because 120/3 = 40 is a whole number result.

Also, 7 is prime. The only factors of 7 are 1 and itself. This means that 7 and 120 do not have any common factors other than 1. The GCF of 7 and 120 is 1, leading to the two numbers being relatively prime

Side note: The term "coprime" is sometimes used in place of "relatively prime"

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