Problems & Exercises for MACRO

UNIT THREE (FOR EXAM THREE)

Unit Three--Assignment Three--Web Problem 3


For each of the following MPCs, calculate the multiplier. Use the following formula:

Multiplier = 1/(1-MPC)

MPC

Multiplier

.9

 

.8

 

.7

 

.6

 

.5

 

.4

 

.3

 

.2

 

.1

 
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Solution:


MPC

Multiplier

.9

10

.8

5

.7

3.33

.6

2.50

.5

2.00

.4

1.67

.3

1.43

.2

1.25

.1

1.11



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