38 if the mpc for the closed economy with no government is


38. If the MPC for the closed economy with no government is 0.8, the:

            A)      MPS is 1/0.8.

            B)     the multiplier is 5.

            C)      the multiplier is 8.

            D)      the MPS is 0.4.

How do you get that the multiplier is 5? do i use the multiplier formula?

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Macroeconomics: 38 if the mpc for the closed economy with no government is
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