Which formula MOST accurately depicts the expenditure multiplier?

Question

Quizplus · Accepted Answer

The expenditure multiplier formula is 1/(1-MPC), where MPC is the marginal propensity to consume. This formula shows the amount by which total output or income in an economy will increase when an initial injection of expenditure (such as government spending or consumer consumption) is made. Therefore, choice C is the correct formula as it includes the correct MPC in the denominator.

Which Formula MOST Accurately Depicts the Expenditure Multiplier