-In the above figure, the multiplier is equal to
A) one.
B) three.
C) zero.
D) two.

Name: -In the above figure, the multiplier is equal to A) one. B) three. C) zero. D) two.
Brand: Quizplus
Rating: 4.8 (34 reviews)

Question

-In the above figure, the multiplier is equal to
A) one. 
B) three. 
C) zero. 
D) two.

Quizplus · Accepted Answer

The multiplier is typically calculated as 1/(1-MPC) where MPC is the marginal propensity to consume. If the multiplier is two, it implies that the MPC is 0.5.

-In the Above Figure, the Multiplier Is Equal to