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Derive the multiplier with foreign exchange

      

Derive the multiplier with foreign exchange

  

Answers


Dana
Y = a + ß (Y-tY) + I + G + X – M0 -dY
Y = a + ßY – ßtY + I + G + X - M0 -dY
Y = a + ßY –ßtY + I + G + X - M0 -dY
Y – ßY + ßtY + dY= a + I + G + X - M0
(1 – ß + ßt +d) Y = a + I + G+ X - M0
Y = 1/ (1 – ß + ßt +d) * a + I + G+ X - M0
The multiplier is
Y = 1/ (1 – ß (1 - t) +d)

Dana05 answered the question on July 18, 2019 at 20:02


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