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May 28, 2015

Homework Help: economics

Posted by jill on Wednesday, May 22, 2013 at 10:56am.

am i right? dont want to hand in wrong homework again, my mom will kill me

A research firm calculated that students who attend University spend about $2,760 each in the local economy for a total of $50.45 million. In total, the impact of their spending on the local economy is $63 million. Calculate the size of the student spending multiplier.



MPC =impact of spending/actual spend by students

or

63m/50.45m = 1.24876114965, rounding to two decimal places we end up with

63m/50.45m = 1.25

So in this instance the multiplier is 1.25.

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