Economic impact of fc new york new stadium in nyc

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Question

You are tasked with estimating the economic impact of FC New York's new stadium in NYC. Assume the stadium adds $20 million in new consumption expenditures (i.e., income to the county). If the marginal propensity to consume in NYC is 0.9 AND there is a leakage of half (0.5) of new income, what is the impact on the county economy given the multiplier (which you can calculate using 'Method A' as we called it in class)? Your response should be in the millions of dollars and rounded to two decimal places (i.e., type 50.25 for a $50,250,000 impact on the county).

Reference no: EM133268512

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