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Correct : E. 0.57 change in national income = multiplier* change in autonomous spending 53 = multiplier*23 Multiplier = 53/23= 2.3043 Multiplier = 1/(1-mpc) 2.3043

Correct : E. 0.57

change in national income = multiplier* change in autonomous spending

53 = multiplier*23

Multiplier = 53/23= 2.3043

Multiplier = 1/(1-mpc)

2.3043 = 1/(1-mpc)

1-mpc = 1/2.3043

1- mpc = 0.4339

mpc= 0.566

This is approximately equal to 0.57

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