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If the marginal propensity to consume is 0.8, the value of the multiplier is:
Beta
A metric for assessing the uncertainty, or inherent danger, of an individual security or collective investment compared to the market at large.
Common Stock
Represents equity ownership in a corporation, giving holders voting rights and a share in the company's profits via dividends.
Risk-Free Rate
The hypothesized return rate of a risk-less investment, often exemplified by the yield found in government securities.
Market Risk Premium
The increased earnings expected by an investor for choosing a risky market portfolio over assets with no risk.
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