An economy has no imports and no taxes. the marginal propensity to save is . a​ ______ increase in autonomous expenditure increases equilibrium expenditure by​ $60 billion. the multiplier is​ ______.

Question: An economy has no imports and no taxes. the marginal propensity to save is . a​ ______ increase in autonomous expenditure increases equilibrium expenditure by​ $60 billion. the multiplier is​ ______.  

An economy with no imports and no taxes is a closed economy. Let's use the information given to find the missing values:

1. The marginal propensity to save (MPS) is not provided, so we'll use "MPS" to represent it.

2. An increase in autonomous expenditure (A) increases equilibrium expenditure by $60 billion.

3. We need to calculate the multiplier (K).

The multiplier (K) is given by the formula:

K = 1 / (1 - MPS)

To find MPS, we use the relationship:

Multiplier (K) * Change in Autonomous Expenditure (A) = Change in Equilibrium Expenditure (ΔE)

We are given ΔE = $60 billion.

Now, we can calculate MPS:

K = 1 / (1 - MPS)

K * ΔA = ΔE

K * A = ΔE

1 / (1 - MPS) * A = $60 billion

Now, we can solve for MPS:

1 - MPS = A / ΔE

MPS = 1 - (A / ΔE)

MPS = 1 - (A / $60 billion)

Since the value of MPS is not provided, we cannot determine the exact increase in autonomous expenditure. However, with the given information, the multiplier (K) can be calculated once MPS is known.

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