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Homework answers / question archive / What would the multiplier be if the marginal propensity to consume was c
What would the multiplier be if the marginal propensity to consume was
c. 3/4?
Computation of Mutliplier:
Multiplier = 1/(1-MPC)
= 1/(1-(3/4))
= 1/0.25
Mutiplier = 4
