Skip to main content
Macroeconomics
My Course
Learn
Exam Prep
AI Tutor
Study Guides
Flashcards
Explore
Try the app
My Course
Learn
Exam Prep
AI Tutor
Study Guides
Flashcards
Explore
Try the app
Back
Multiplier Effect of Investment Spending
Download worksheet
Problem 1
Problem 2
Problem 3
Problem 4
Problem 5
Problem 6
Problem 7
Problem 8
Problem 9
Problem 10
Multiplier Effect of Investment Spending
Download worksheet
Practice
Summary
Previous
4 of 10
Next
15. Income and Consumption / Multiplier Effect of Investment Spending / Problem 4
Problem 4
How does the relationship between MPC and MPS affect the calculation of the multiplier?
A
The multiplier is calculated as MPC + MPS.
B
The multiplier is calculated as MPC/MPS.
C
The multiplier is calculated as MPS/MPC.
D
The multiplier is calculated as 1/MPS, where MPS = 1 - MPC.
AI tutor
0
Show Answer