If the marginal propensity to save is 0.35. What is the size of the expenditure multiplier?Provide answer to one decimal point.
Question
Solution 1
The expenditure multiplier can be calculated using the formula:
Multiplier = 1 / (1 - Marginal Propensity to Consume)
However, in this case, we are given the Marginal Propensity to Save (MPS), not the Marginal Propensity to Consume (MPC). But we know that:
MPC + MPS = 1
So, we can calculate the Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob
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