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Bailey Ortega
on Oct 13, 2024

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If the MPC is .9,the multiplier is

A) .1.
B) .9.
C) 1.
D) 9.
E) 10.

MPC

The marginal propensity to consume, which is the proportion of additional income that a consumer spends on goods and services rather than saving it.

Multiplier

In economics, a factor by which a change in spending results in a greater change in national income.

  • Understand the multiplier effect and its implications for the economy.
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Elisa MazzocchiOct 14, 2024
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