Express the number 0.6 as a ratio of integers. ㅇ유 ㅇ. 69

Mathematics For Machine Technology
8th Edition
ISBN:9781337798310
Author:Peterson, John.
Publisher:Peterson, John.
Chapter20: Ratio And Propor Tion
Section: Chapter Questions
Problem 7A
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Express the number 0.6 as a ratio of integers.
ㅇ유
ㅇ.
Transcribed Image Text:Express the number 0.6 as a ratio of integers. ㅇ유 ㅇ.
When money is spent on goods and services, those that receive the money also
spend some of it. The people receiving some of the twice-spent money will spend
some of that, and so on. Economists call this chain reaction the multiplier effect. In a
hypothetical isolated community, the local government begins the process by
spending D dollars. Suppose that each recipient of spent money spends 100c% and
saves 100s% of the money that he or she receives. The values c and s are called the
marginal propensity to consume and the marginal propensity to save and, of course,
c+ s = 1.
The number k = 1/s is called the multiplier. What is the multiplier if the marginal
propensity to consume is 60%?
3.5
1.5
2.5
Transcribed Image Text:When money is spent on goods and services, those that receive the money also spend some of it. The people receiving some of the twice-spent money will spend some of that, and so on. Economists call this chain reaction the multiplier effect. In a hypothetical isolated community, the local government begins the process by spending D dollars. Suppose that each recipient of spent money spends 100c% and saves 100s% of the money that he or she receives. The values c and s are called the marginal propensity to consume and the marginal propensity to save and, of course, c+ s = 1. The number k = 1/s is called the multiplier. What is the multiplier if the marginal propensity to consume is 60%? 3.5 1.5 2.5
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