-In the above figure, the multiplier is equal to
A) zero.
B) three.
C) one.
D) two.

Name: -In the above figure, the multiplier is equal to A) zero. B) three. C) one. D) two.
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Question

-In the above figure, the multiplier is equal to
A) zero. 
B) three. 
C) one. 
D) two.

Quizplus · Accepted Answer

The multiplier is typically calculated as 1/(1-MPC), where MPC is the marginal propensity to consume. Without specific values, the standard multiplier in many basic economic models is often assumed to be two.

-In the Above Figure, the Multiplier Is Equal to