Question

in an economy the marginal propensity to consume is 0.75 find out the value of the multiplier ​

Answer 1

$\bf {Marginal \:Propensity \:to \:Consume}$$\bf {(MPC) = 0.75}$

$\bf {Multiplier =?}$

$\bf\underline{Formula :-}$

$k = \frac{1}{1 - mpc} \\ \\ k = \frac{1}{1 - 0.75} \\ \\ k = \frac{1}{0.25} = 4$

$\boxed{K = 4}$ $\bf\green {(Answer)}$