Question

calculate the value of K (multiplier) of MPC =0.75​

Answer 1

your ans is

your ans is $= 4$

FØŁŁØW MƏ ❤❤

Answer 2

Answer:

If the MPC is 0.75, the Keynesian government spending multiplier will be 4/3; that is, an increase of $ 300 billion in government spending will lead to an increase in GDP of $ 400 billion. The multiplier is 1 / (1 - MPC) = 1 / MPS = 1 /0.25 = 4.