Please Explain

QUESTION 6 2 points Save Answer 1 The traditional formula for the G multiplier is 1 - MPC Where did economists get that formula? In this problem you will find out. Focus on this generic Keynesian Cross model: /(r) = c - dr, C(Y - T) = a + b(Y - T), and r, G, and T are exogenous. Notice that no specific numbers are specified because this is meant to be generic. The formula you get for the G multiplier will be correct whether investment is 2 - 0.5r or 167 - 37r or some other random function. i. Find the IS equation ii. What is the G multiplier? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac)