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Elana Glassman
on Oct 13, 2024

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If the multiplier is 2,the MPC is

A) .1.
B) .2.
C) .5.
D) .8.
E) 1.0.

Multiplier

In economics, a factor that quantifies how an initial change in one economic variable (such as investment) will affect changes in other variables, like total output.

MPC

Marginal Propensity to Consume, a measure that describes the proportion of an increase in income that gets spent on consumption rather than being saved.

  • Understand the concept and calculation of the fiscal multiplier and the marginal propensity to consume (MPC).
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AB
ayana brownleeOct 13, 2024
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