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10 December, 09:56

If the multiplier is 4 the mpc is

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  1. 10 December, 10:26
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    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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