If the MPS is only half as large as the MPC, the multiplier:
A)is 2.
B)is 3.
C)is 4.
D)cannot be determined from the information given.

Name: If the MPS is only half as large as the MPC, the multiplier: A)is 2. B)is 3. C)is 4. D)cannot be determined from the information given.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The multiplier is calculated as 1/(1-MPC) or 1/MPS. If MPS is half the size of MPC, then the multiplier would be 1/(1-0.5) or 1/0.5, which is 2. Therefore, the correct answer is B.

If the MPS Is Only Half as Large as the MPC