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austin coursey
on Oct 13, 2024

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If the MPC is .6,the multiplier is

A) .4.
B) .6.
C) 1.
D) 2.5.
E) 4.

MPC

The marginal propensity to consume, which represents the portion of additional income that a household spends on consumption instead of saving.

Multiplier

In economics, a factor by which a change in one economic variable, such as spending, leads to a greater change in another variable, such as GDP.

  • Comprehend the multiplier effect and its consequences on economic conditions.
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MD
Myrthe DermoisOct 19, 2024
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