Activity 1.4: The multiplier (pair/group) John receives R1 000 a month and he tends to spend 75 cents of each rand that he receives. a) Calculate John's multiplier using his consumption tendency. 1. b) Calculate John's multiplier using his savings tendency. The government of Country Corona decides to expand the national transportation system by adding railways and tarred roads to the value of 600 million coronas, their national currency. The tendency of households in Corona is to save 5 per cent of their income. The current tax rate is 45 per cent. There are no imports. a) Calculate the size of the multiplier for Corona. b) What will the size of the multiplier's effect be? c) What will happen if the tax rate decreases by 10 percentage points? 3. Calculate the injection needed in Country Corona if the government needs 120 million coronas in order to increase economic growth by 1 per cent. The multiplier is 4. 2. (4) (3) (4) (6)​