Question

How does the Keynesian multiplier relate to the marginal propensity to consume?

Answer 1

Keynesian multiplier `k=1/(1-MPC)`

Explanation:

Keynesian multiplier `k=(DeltaY)/(Delta I)`
It can also be obtained from `k=1/(1-MPC)`

In this way Keynesian Multiplier is related to `MPC`

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