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We have the following information on the levels of income, consumption and planned investment for a country: Aggregate Income

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MPC=marginal propensity to consume =change in consumption /change in output
=(2275-1900)/(2500-2000)
=0.75
the MPC=0.75

Investment multiplier =1/(1-MPC)
=1/(1-0.75)
=4
the multiplier is 4

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