If the marginal propensity to consume is 0.75, then the government-purchases multiplier is:0.25.0.75.4.4.75.

Break Down the Problem

1. Identify the marginal propensity to consume (MPC).
2. Use the formula to calculate the government-purchases multiplier.

Relevant Concepts

The government-purchases multiplier can be calculated using the formula: $\text{Multiplier} = \frac{1}{1 - \text{MPC}}$

Analysis and Detail

1. Given that the marginal propensity to consume (MPC) is 0.75, we can substitute this value into the formula.
2. Thus: $\text{Multiplier} = \frac{1}{1 - 0.75}$
3. This simplifies to: $\text{Multiplier} = \frac{1}{0.25} = 4$

Verify and Summarize

We calculated the multiplier based on a marginal propensity to consume of 0.75, leading to a government-purchases multiplier of 4. This result indicates that for every dollar the government spends, total economic output increases by four dollars.

Final Answer

The government-purchases multiplier is 4.