Asked by
Yangyang Ramos
on Oct 13, 2024
Verified
If the multiplier is 10,the MPC is
A) 0.
B) .1.
C) .5.
D) .9.
E) 1.0.
Multiplier
In economics, a factor by which a change in spending will be magnified in the overall economy, affecting output and income levels.
MPC
Marginal Propensity to Consume, which measures the proportion of additional income that an individual spends on consumption.
- Acquire knowledge on the principle and mathematical determination of the fiscal multiplier along with the marginal propensity to consume (MPC).
Verified Answer
AN
Learning Objectives
- Acquire knowledge on the principle and mathematical determination of the fiscal multiplier along with the marginal propensity to consume (MPC).