# IF THE MPC IS THE MULTIPLIER WILL BE

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## If the mpc is the multiplier will be

WebExpert Answer. 1. If the MPC is , the government spending multiplier = 1/ (1-MPC) = 1/ (1- ) = 1/ = 4 From the given figure it can be seen that US has absolute advantage in production of both soybeans and alfalfa, because it can produce more o . If the MPC is , the government spending multiplier is A. 4. WebSolved 2. Define MPC and MPS. Suppose at a given time, the | www.exmservise.ru Business Economics Economics questions and answers 2. Define MPC and MPS. Suppose at a . WebMPC is denoted by C and is equal to ∆ C ∆ Y. The maximum value which MPC can take is 1. Investment multiplier refers to the ratio of the total increment in equilibrium value of final goods output to the initial increment in autonomous expenditure and is denoted by K. The investment multiplier = ∆ Y ∆ A = l l - c = l S.