Multiplier is estimated as

$\frac{1}{M P C}$

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$\frac{1}{1 - M P C}$

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$\frac{1}{1 + M P C}$

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$\frac{1}{1 - M P S}$

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Solution

The correct option is B
$\frac{1}{1 - M P C}$

Multiplier = $\frac{1}{1 - M P C}$

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Similar questions

Find MPC when investment multiplier = 1.

Zero MPC implies zero multiplier.

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