A general formula for the multiplier is
A) $\frac { 1 } { ( 1 - M P S ) }$ .
B) $\frac { 1 } { ( M P C ) }$ .
C) $\frac { 1 } { ( 1 - M P C ) }$ .
D) $\frac { 1 } { ( M P S - 1 ) }$ .

Name: A general formula for the multiplier is A) $\frac { 1 } { ( 1 - M P S ) }$ . B) $\frac { 1 } { ( M P C ) }$ . C) $\frac { 1 } { ( 1 - M P C ) }$ . D) $\frac { 1 } { ( M P S - 1 ) }$ .
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Question

Quizplus · Accepted Answer

The multiplier formula is $\frac{1}{1 - MPC}$, where MPC is the marginal propensity to consume.

A General Formula for the Multiplier Is A) 1(1−MPS)\frac { 1 } { ( 1 - M P S ) }(1−MPS)1​

A General Formula for the Multiplier Is
A) $\frac { 1 } { ( 1 - M P S ) }$