How does the marginal propensity to consume relate to the Keynesian multiplier? Macroeconomics Aggregate Demand Multiplier and crowding-out effects 1 Answer Nallasivam V Jan 9, 2016 Refer the explanation section Explanation: Keynesian multiplier is k=ΔYΔI In terms of MPC, the Multiplier is - k=11−MPC Watch this video Answer link Related questions Why is the crowding-out effect important? What is the Keynesian multiplier? If the Marginal Propensity to consume (MPC) is .9, what would be the change in GDP from an... If the marginal propensity to consume is 0.9 in a closed economy, what would be the effect on... Does the slope of the aggregate expenditures curve in the Keynesian model equal the marginal... If the marginal propensity to consume is .9, then what is the marginal propensity to save? What is the mathematical formula for the marginal propensity to consume? How does the Keynesian multiplier relate to the marginal propensity to consume? How does the Keynesian multiplier relate to the marginal propensity to save? See all questions in Multiplier and crowding-out effects Impact of this question 1464 views around the world You can reuse this answer Creative Commons License