The multiplier and the accelerator

The table below shows select macroeconomic data collected for an island economy during a fiscal year.

Economic Indicator	Value
Capital-output ratio (Accelerator coefficient)	1.50
Marginal Propensity to Save (MPS)	0.18
Marginal Rate of Taxation (MRT)	0.25
Marginal Propensity to Import (MPM)	0.17
Gini coefficient	0.42

Using this information, calculate the value of the national income multiplier.

$0.60$

$1.67$

$2.86$

$5.56$

The table below shows select macroeconomic data collected for an island economy during a fiscal year.

Economic Indicator	Value
Capital-output ratio (Accelerator coefficient)	1.50
Marginal Propensity to Save (MPS)	0.18
Marginal Rate of Taxation (MRT)	0.25
Marginal Propensity to Import (MPM)	0.17
Gini coefficient	0.42

Using this information, calculate the value of the national income multiplier.

$0.60$

$1.67$

$2.86$

$5.56$

The multiplier and the accelerator Questions