If the marginal propensity to consume $(M P C)$ is $0.80,$ the value of the spending multiplier is a. 2. b. 5. c. 8. d. 10.
Added by Joseph C.
Step 1
So, if the MPC is 0.80, the spending multiplier would be 1 / (1 - 0.80) = 1 / 0.20 = 5. Show more…
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