-Refer to the above graph to answer this question.What is the value of the multiplier?
A)0.5
B)1
C)1.5
D)2
E)2.5

Name: -Refer to the above graph to answer this question.What is the value of the multiplier? A)0.5 B)1 C)1.5 D)2 E)2.5
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Question

-Refer to the above graph to answer this question.What is the value of the multiplier?
A)0.5 
B)1 
C)1.5 
D)2 
E)2.5

Quizplus · Accepted Answer

The multiplier is calculated as 1/(1-MPC). If the graph shows an MPC of 0.5, then the multiplier is 1/(1-0.5) = 2.

-Refer to the Above Graph to Answer This Question