am i right? don't 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.
1 answer
oops should be in $ not £, eek!
3 answers