Answer to Question #135829 in Macroeconomics for Rika

Question #135829

In the simple Keynesian model without a government or foreign trade, assuming the MPC is 0.70. The multiplier is
[1] 1-0.7/1
[2] 1/0.7
[3] 1/1-0.7
[4] 1-0.3/1

Expert's answer

[3] 1/1-0.7

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