Question

Explain the relation between marginal propensity to consume and investment multiplier

Answer 1

Explanation:

The relationship between the Marginal Propensity to Consume (MPC) and the Multiplier (K) The Multiplier (K) is the ratio of a change in National Income to the change in government spending that cause it. ... If the MPC is equal to 0.8, those people will spend GH₵ 4 Billion.

Answer 2

Answer:

Explanation:

The relationship between the Marginal Propensity to Consume (MPC) and the Multiplier (K) The Multiplier (K) is the ratio of a change in National Income to the change in government spending that cause it. ... If the MPC is equal to 0.8, those people will spend GH₵ 4 Billion.

mark itas brainly