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IF MPC = 0.5, then Multiplier (k) will be ______ - Economics

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MCQ
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IF MPC = 0.5, then Multiplier (k) will be ______ 

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  • 1/4

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  • 1

  • 2

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Solution

IF MPC = 0.5, then Multiplier (k) will be 2.

Concept: Determination of Equilibrium Income in the Short Run - The Multiplier Mechanism
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