The investment expenditure of an economy changes by N2 million and MPC is 0.75
The multiplier is
The multiplier is
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Correct Answer: Option B
Explanation:
The Multiplier is calculated as ( 1 divided by 1 minus the MPC)
Multiplier = 1/1 - MPCÂ
  \(\frac{1}{1}\) - 0.75
1 - 0.25Â = 4
The Multiplier is calculated as ( 1 divided by 1 minus the MPC)
Multiplier = 1/1 - MPCÂ
  \(\frac{1}{1}\) - 0.75
1 - 0.25Â = 4