National equilibrium Open Economy Numerical Example

[@diiansusilawatiii]

Thankyou so much it's really help me to understand 🙏

[@qasemtv1737]

You forgot to turn off the camera Doc 😅😅😅!! Thanks for the heads up

[@thetrotteronline5702]

Thank you. On the multiplier is it not 1/(1-marginal propensity to spend) = 1/(1-0.76) = 1/0.24

[@mymoon_writer]

There are two ways:
i) 1/(1-MPC)
ii) 1/ MPS
Note that 1-MPC equals to MPS

[@mymoon_writer]

To find the MPC he first had to take 1-MPS (1-0.76) which gives you 0.24.
Then he used the formula 1/(1-MPC)
Which was 1/(1-0.24) etc. So what he did is correct.
BUT an easier way is that if given the MPS, to find multiplier just do 1÷MPS. You get the answer

[@elviskipchumba1408]

was very helpful thanks

[@the_Unbiased]

thank you so much...greatings from Kenya

[@mymoon_writer]

Hey there! I am from Kenya too

[@MohammedMohammed-te8nf]

Excellent

[@neilnkhoma4089]

The multiplier isn't in a closed economy

[@elizaberthhaikokola5096]

Thank you so much!

[@tashaboothe1363]

Thank you

[@alicemanijacob353]

What's the value of multiplier ? Why is it so ? In an open economy it is 1/ 1-b-m ?

[@ma_r1o24]

In an open economy shouldn't multiplier be 1/(mps+mrt+mpm)= 1/(0.16+0+0.08)=4.17
I also don't understand why he said the mpc is 0.76. Shouldn't it be 0.84 from the consumption function?

[@suhatibanik]

Yesss it should be 0.84,,

[@mymoon_writer]

What about the T. Where do we ever use it?

[@denvergille9221]

What if C had a disposable income

[@jonathansimukoko466]

thank you