(ii) Calculate the multiplier magnitude when the marginal propensity to consume is 0.6
Multiplier = 1/MPS = 1/(1-MPC) = 1/(1- 0.6) = 1/0.4 = 2.5
CATEGORIES Economics
TAGS Dr. Bbosa Science
AUTHOR
OLDER POSTDefine income multiplier
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Thanks for being such a source of insight. Stationary