Asked by
Bailey Ortega
on Oct 13, 2024Verified
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.
Verified Answer
EM
Learning Objectives
- Understand the multiplier effect and its implications for the economy.