If the marginal propensity to save is 0.8, calculate the multiplier?

jtimm

9 years ago

A is the answer.

Multiplier is K=1/MPS or K=1/1-MPC.

K=1/0.8= 1.25

aakinbola

6 years ago

The formula for multiplier is known as K= 1/mps
Therefore, the right answer is K=1/0.8 which is 1.25

abdulmassari

9 years ago

Pls o we need explanation for dis question guyz

kynagrego

3 years ago

0.8 represents MPS
K= 1/MPS

Heryinkehola

1 year ago

We were given MPS not MPC the solving is wrong

Ronny G

9 years ago

yes o

Adewale2018

5 years ago

the formular for multiplier is M = 1 / (1 - MPC)
Therefore, the answer is = 5