Question 30
EasyOriginal questionIf the MPC is 0.75, the investment multiplier is
Show the answer and explanation
CorrectNot quiteAnswer C
Correct answer: C
Explanation
k = 1 ÷ (1 − 0.75) = 1 ÷ 0.25 = 4.
Worth noting
1.33 is 1 ÷ 0.75, which divides by the MPC instead of the MPS.
- Concept
- Calculating k
- Typical timeTypical
- 40 s
- Your timeYours
- —
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