IF MPC 0 5 then Multiplier k will be ........

IF MPC = 0.5, then Multiplier (k) will be:

1/4

= 0

To determine the multiplier (k), you use the formula k = 1/(1 - MPC).

- MPC = 0.5: This is the marginal propensity to consume, meaning for every additional dollar received, 50 cents is consumed.

- Option 1: 1/4: This would imply k = 0.25. Not correct.

- Option 2: = 0: When MPC = 0.5, k cannot be zero.

- Option 3: 1: This implies no change or effect. Incorrect for MPC = 0.5.

- Option 4: 2: Calculating k = 1/(1 - 0.5) = 2. This is the correct answer.

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