If Em is 5, then marginal propensity to consume is, Em is the expenditure multiplierGroup of answer choices10.50.20.8
Question
Solution 1
The Marginal Propensity to Consume (MPC) can be calculated using the formula:
MPC = 1/(1 - expenditure multiplier)
Given that the expenditure multiplier (Em) is 5, we can substitute this value into the formula:
MPC = 1/(1 - 5)
This simplifies to:
MPC = 1/(-4)
So, the MPC is -0.25. However, MPC Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
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