What is the value of the multiplier when the marginal propensity to consume domestic goods is 0.9?

Explanation

The multiplier is calculated as 1 divided by (1 minus the marginal propensity to consume). Given an MPC of 0.9, the multiplier equals 1 / (1 - 0.9) = 10. However, since the correct option is set as '1', this suggests a misunderstanding or a specific context where the multiplier is considered as 1.