State the relationship between MPC and multiplier

State the relationship between MPC and multiplier?

Answer: The value of multiplier differs directly with MPC.

K=1/1 - MPC.

Related Questions in Microeconomics

Q : Describe the wave of mergers in the

Describe the wave of mergers in the banking industry?Many economic factors have caused banking institutions to merge over the past various years. What are these factors comprise Please explain breifly...

Q : Disparities in relative distributions

Disparities into the relative distributions of two variables can be demonstrated with: (w) Lorenz curves. (x) Friedman curves. (y) Engels curves. (z) Sowell curves. I need a good answer on the topic of Econ

Q : Absolute values in price elasticity The

The form of elasticity which economists commonly state like an absolute value since this is classically negative is the: (1) price elasticity of supply. (2) income elasticity of demand. (3) price-cross elasticity of supply. (4) price-

Q : Diseconomies of Scale Diseconomies of

Diseconomies of Scale: The diseconomies are the drawbacks occurring to a firm or a group of firms due to big scale production.Internal Diseco

Q : Relatively price elastic demand for

If a change in the supply of a good results within a percentage change into quantity demanded which exceeds within absolute value the percentage change within price, in that case demand is relatively: (i) price elastic. (ii) inferior. (iii) normal. (i

Q : Derived Demand for Labor in competition

The faddish popularity of Atkins and South Beach diets both, and both of that advise dieters to eat more meat and to decrease the intake of starchy carbohydrates, most likely decreased incomes most sharply for: (1) grocery store clerks. (2) cattle ran

Q : Leftward shift of PPC What does

What does leftward shift of PPC point out? Answer: It points out underutilization of resources.

Q : Corollary of the law of equal marginal

The corollary of the law of equal marginal benefit is the principle of: (1) Equal marginal utilities per dollar. (2) Diminishing marginal utility. (3) Income injection. (4) Substitution in demand. (5) Diminishing returns. Can someo

Q : Econ Give the answer of following

Give the answer of following question. In the quintile distribution of income, the term "quintile" represents: A) 5 percent of the income receivers. B) 10 percent of the income receivers. C) 20 percent of the income receivers. D) 25 percent of the income receivers.

Q : Perpetuity bond in fixed cash flows A

A perpetuity is a: (w) financial asset which provides its owner eternal life. (x) perpetual motion machine which lasts forever. (y) bond which pays its owner an annual income forever. (z) profitable share in an established corporation.

Discover Q & A

Leading Solution Library

Avail More Than 1450977 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1952380
Asked

3,689

Active Tutors

1450977

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment