Question

The concept of multiplier depends upon what ?

Answer 1

Answer:

The multiplier effect

The multiplier effectThe size of the multiplier depends upon household's marginal decisions to spend, called the marginal propensity to consume (mpc), or to save, called the marginal propensity to save (mps). ... Hence, the multiplier is 5, which means that every £1 of new income generates £5 of extra income

Explanation:

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Answer 2

Answer:

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the concept of multiplier depends on the households marginal decision to spend