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disposable income) is 0.75, and imports are 25 per cent of national income, then the simple

multiplier is????

a) 1.568

b) 1.666

c) 1.951

d) 2.051…………….

Please solve this…..

Thanks

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2: The Postulates of the Classical Economics | Scandalum Magnatum

]]>multiplier is equal to 1/1-b, b refers to MPC (marginal propensity to consume) or you can say 1/mps , MPS (marginal propensity to save) by increasing our consumption we increase the level of investment which leads to further income generation that is why we also write it as m= Δy/ΔI ]]>

what is the relationship between simple multiplier and marginal propensity to consume ]]>

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