Which of the following is true?
A) If MPC = 0.50,then the multiplier is 2.00.
B) If MPC = 0.82,then the multiplier is 1.25.
C) If MPS = 0.35,then the multiplier is 2.86.
D) If MPC = 0.97,then the multiplier is 3.33.
E) a and c

Question

Quizplus · Accepted Answer

The multiplier is calculated as 1/(1-MPC) or 1/MPS. For A, if MPC = 0.50, the multiplier is 1/(1-0.50) = 2.00. For C, if MPS = 0.35, then MPC = 1 - MPS = 0.65, and the multiplier is 1/(1-0.65) = 2.86. Both A and C are correct.

Which of the Following Is True