Spending Multiplier Calculator Tool

Spending Multiplier Calculator

Spending Multiplier Calculator

Spending Multiplier Calculator

Component Description
Marginal Propensity to Consume (MPC) The proportion of additional income that is spent on consumption.
Spending Multiplier The factor by which a change in spending will affect the total economic output.
Formula Spending Multiplier = 1 / (1 – MPC)
Purpose Used to measure the impact of changes in consumption on the overall economy.

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