Asked by
Maldha Ibrahim
on Oct 13, 2024Verified
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).
Verified Answer
AJ
Learning Objectives
- Comprehend the theory and computation related to the fiscal multiplier and the marginal propensity to consume (MPC).