Refer to the information provided in Figure 9.4 below to answer the questions that follow. Figure 9.4
-Refer to Figure 9.4. What is the value of the expenditure multiplier?

Name: Refer to the information provided in Figure 9.4 below to answer the questions that follow. Figure 9.4 -Refer to Figure 9.4. What is the value of the expenditure multiplier?
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Question

Refer to the information provided in Figure 9.4 below to answer the questions that follow.  Figure 9.4
-Refer to Figure 9.4. What is the value of the expenditure multiplier?

Quizplus · Accepted Answer

The expenditure multiplier is calculated as 1/(1-MPC). If the MPC is 0.8, the multiplier is 1/(1-0.8) = 5.

Refer to the Information Provided in Figure 9