Given that the marginal propensity to consume (MPC) is 0.75, what is the corresponding multiplier value?

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Explanation

The multiplier is calculated as 1 divided by (1 minus MPC). Here, it equals 1 / (1 - 0.75) = 4.

Given that the marginal propensity to consume (MPC) … — Macroeconomic Policy Tools | PakQuizHub