Re: ISI 2013 ME - I Answer Key

Posted by onionknight on May 08, 2015; 1:41pm
URL: http://discussion-forum.276.s1.nabble.com/ISI-2013-ME-I-Answer-Key-tp7579715p7596676.html

7.) Investment goods are supplied from imports which means savings are 0. Therefore marginal propensity to consume is >=1 otherwise some amount will be saved and invested. Therefore, multiplier will be non positive.

Could you please explain how you did the 6th question?