Answered

Welcome to Westonci.ca, your ultimate destination for finding answers to a wide range of questions from experts. Get detailed and precise answers to your questions from a dedicated community of experts on our Q&A platform. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform.

If the marginal propensity to consume is 0.40 , what is the multiplier, assuming there are no taxes or imports? Round to the tenths place.

Sagot :

abiolataiwo2015

Based on the information given the multiplier, assuming there are no taxes or imports is 1.67.

Using this formula

Multiplier = 1 / ( 1 - MPC)

Where:

MPC=Marginal propensity=0.40

Let plug in the formula

Multiplier = 1 / ( 1 - 0.40)

Multiplier =1/.60

Multiplier = 1.666

Multiplier =1.67 (Approximately)

Inconclusion the multiplier, assuming there are no taxes or imports is 1.67.

Learn m ore about multiplier here:https://brainly.com/question/16679315

We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. Thank you for visiting Westonci.ca. Stay informed by coming back for more detailed answers.