Given the marginal propensity to consume (MPC), the miltiplier is given by
Multiplier = 1 / (1 - MPC)
Given that the marginal propensity to consume is 0.8, the multiplier is given by
Multiplier = 1 / (1 - 0.8) = 1 / 0.2 = 5
You don't show the details but you would have to multiply two linear equations to produce a quadratic equation. ex:
y2*y1=(ax+b)(cx+d)=acx^2+(ad+bc)x+bd
Steve has 340 colored pencils , that was pretty easy
I think its f i might be wong please correct me if so :)
