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प्रश्न
If the marginal propensity to consume is 0.75, what is the value of the multiplier? If the MPC increases to 0.9, how would the multiplier be affected?
संख्यात्मक
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उत्तर
k = `1/(1-"MPC")`
When MPC = 0.75
k = `1/(1-0.75)`
= `1/0.25`
k = 4
When MPC = 0.9
k = `1/(1-0.9)`
= `1/0.1`
k = 10
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