Asked by
austin coursey
on Oct 13, 2024Verified
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.
Verified Answer
MD
Learning Objectives
- Comprehend the multiplier effect and its consequences on economic conditions.