The nation of Omega has an MPC of 0.70 and a multiplier of 2.22. Therefore, Omega's MPM is
A)0.9
B)0.7
C)0.5
D)0.15
E)This question cannot be answered without knowing the MPS

Name: The nation of Omega has an MPC of 0.70 and a multiplier of 2.22. Therefore, Omega's MPM is A)0.9 B)0.7 C)0.5 D)0.15 E)This question cannot be answered without knowing the MPS
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Question

Quizplus · Accepted Answer

The multiplier is calculated as 1/(1-MPC-MPM). Given the multiplier is 2.22, solving 1/(1-0.70-MPM) = 2.22 gives MPM = 0.15.

The Nation of Omega Has an MPC of 0