For each of the following values of the marginal propensity to consume (MPC), find the value of

Question:

For each of the following values of the marginal propensity to consume (MPC), find the value of the multiplier. Use the equation from footnote 4 on page 308 to also calculate the value of the tax multiplier for each value of the MPC.
a. MPC = 0.8
b. MPC = 0.75
c. MPC = 0.6