Where MPC is the marginal propensity to consume,the formula for the spending multiplier is:

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The spending multiplier is the ratio of the change in equilibrium output to a change in autonomous spending. It is calculated as 1/(1 - MPC), where MPC is the marginal propensity to consume. This formula shows that an increase in autonomous spending (such as government spending or investment) will lead to a larger increase in equilibrium output due to the multiplier effect.

Where MPC Is the Marginal Propensity to Consume,the Formula for the Spending