Given the income multiplier formula m = 1/(1-mpc), lower the marginal propensity to consume
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1 mark, −0.33MacroeconomicsKeynesian cross and the multiplierThe investment and expenditure multiplierEasyabout 1 min
UoH 2017 Question 36: Keynesian cross and the multiplier
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Keynesian cross and the multiplier has come up 167 times in 7 exams since 2006.
What this question tests
This question is on The investment and expenditure multiplier, part of Keynesian cross and the multiplier in Macroeconomics.
Why a change in autonomous spending changes income by a larger amount, and what sets its size.
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