The fraction of income spent on imports

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Reference no: EM1313200

Q1. Two friends Diane also Sam own also run a bar. Diane tends bar on Monday Wednesday also Friday also receives wage in addition to tips. Sam tends bar on Tuesday Thursday also Saturday also receives only tips. Which of the subsequent represents an implicit cost of operating the bar? Is it Sam tips, Diane wage, Sam time, both Diane also Sam tips or Diane tips3

Q2. If the MPS is 0.1 also the income tax rate is 0.33 also the fraction of income spent on imports is 0.25, then what is the multiplier?

Reference no: EM1313200

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