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Maldha Ibrahim
on Oct 13, 2024

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If the MPC is .8,the multiplier is

A) .2.
B) .8.
C) 1.
D) 5.
E) 8.

MPC

Marginal Propensity to Consume; the proportion of additional income that a consumer spends on goods and services rather than saving it.

Multiplier

In economics, a factor by which an initial change in spending is magnified or multiplied in the overall economy.

  • Comprehend the theory and computation related to the fiscal multiplier and the marginal propensity to consume (MPC).
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AJ
alexis julianOct 13, 2024
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