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Ana Donovan
18 September, 09:29
If the multiplier is 4 the mpc is
+3
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1
)
Madeleine Montgomery
18 September, 12:42
0
2.5
Explanation:
The multiplier effect is the magnified increase in equilibruim GDP that occurs when any component aggregate expenditures changes. The greater the MPC (the smaller the MPS)
4 multiplier equals 2.5 MPC
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