Explanation:

- The marginal propensity to consume (MPC) is the fraction of additional income that a household consumes rather than saves.

- The marginal propensity to save (MPS) is the fraction of additional income that a household saves.

- The multiplier is calculated as \(1 / (1 - \text{MPC})\) or \(1 / \text{MPS}\).

- If MPC is greater than MPS, it implies a higher MPC value.

- With MPC > MPS, the multiplier is typically greater than 2 because a higher MPC enlarges the multiplier effect.

- Option 1: Greater than 2 – this option is correct because a high MPC leads to a larger multiplier.

- Option 2: Less than 2 – incorrect because it does not align with a higher MPC.

- Option 3: Equal to 2 – unlikely unless specific conditions are met.

- Option 4: Equal to 5 – possible but needs very high MPC value.

Your Correct Answer is: Option 1: Greater than 2