Given MPC Is the Marginal Propensity to Consume, the Formula

question 21

Multiple Choice

Given MPC is the marginal propensity to consume, the formula for the spending multiplier is

• A) 1 -MPC.
• B) 1 - MPC.
• C) 1/ 1+ MPC).
• D) 1/ 1 - MPC).
• E) 1 / MPC.