Calculate the multiplier when the MPC is .5, .75, .90. What is the relationship between MPC and the multiplier?
What will be an ideal response?
When MPC = .5, the multiplier is 2. When MPC = .75, the multiplier is 4. When MPC = .90, the multiplier is 10. The relationship between MPC and the multiplier is direct. As the MPC increases, so does the multiplier [multiplier = 1/MPC].
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What will be an ideal response?
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