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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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