Let x be the marginal propensity to consume, MPC. The principle of spending multiplier involves calculating the infinite sum 1 + x + x2 + x3+… Show that this sum is equal to 1/(1 - x).

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The Answer of Let x be the marginal propensity to consume, MPC. The principle of spending multiplier involves calculating the infinite sum 1 + x + x2 + x3+… Show that this sum is equal to 1/(1 - x).

Let X Be the Marginal Propensity to Consume, MPC