   # What would the multiplier be if the marginal propensity to consume was a. 1/3? b. 1/2? c. 3/4? ### Exploring Economics

8th Edition
Robert L. Sexton
Publisher: SAGE Publications, Inc
ISBN: 9781544336329

#### Solutions

Chapter
Section ### Exploring Economics

8th Edition
Robert L. Sexton
Publisher: SAGE Publications, Inc
ISBN: 9781544336329
Chapter 24, Problem 7P
Textbook Problem
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## What would the multiplier be if the marginal propensity to consume wasa. 1/3?b. 1/2?c. 3/4?

To determine

(a)

To compute:

The value of multiplier if the marginal propensity to consume was 13.

### Explanation of Solution

Given information:

Value of MPC is 13

The formula for multiplier is,

Multiplier=11MPC

Substitute the value i

To determine

(b)

To compute:

The value of multiplier if the marginal propensity to consume was 12.

To determine

(c)

To compute:

The value of multiplier if the marginal propensity to consume was 34.

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