What is the multiplier effect formula?
Answers
Answered by
0
Answer:
The formula to determine the multiplier is M = 1 / (1 - MPC).
Explanation:
hello!!!
Answered by
0
Explanation:
The magnitude of the multiplier is directly related to the marginal propensity to consume (MPC), which is defined as the proportion of an increase in income that gets spent on consumption. ... The multiplier would be 1 ÷ (1 - 0.8) = 5. So, every new dollar creates extra spending of $5
Similar questions