If the marginal propensity to save is 0.35. What is the size of the expenditure multiplier?Provide answer to one decimal point.

The expenditure multiplier can be calculated using the formula:

Multiplier = 1 / (1 - Marginal Propensity to Consume)

However, in this case, we are given the Marginal Propensity to Save (MPS), not the Marginal Propensity to Consume (MPC). But we know that:

MPC + MPS = 1

So, we can calculate the MPC as follows:

MPC = 1 - MPS MPC = 1 - 0.35 MPC = 0.65

Now, we can calculate the multiplier:

Multiplier = 1 / (1 - MPC) Multiplier = 1 / (1 - 0.65) Multiplier = 1 / 0.35 Multiplier = 2.9

So, the size of the expenditure multiplier is 2.9.

The expenditure multiplier can be calculated using the formula 1/(1-MPS), where MPS is the marginal propensity to save.

Here's how you can calculate it:

1. Substitute the given MPS into the formula. In this case, MPS is 0.35. So, the formula becomes 1/(1-0.35).

2. Subtract 0.35 from 1 to get 0.65.

3. Finally, divide 1 by 0.65.

The result is approximately 1.54 when rounded to one decimal point. So, the size of the expenditure multiplier is 1.5.

The expenditure multiplier can be calculated using the formula 1/(1-MPS), where MPS is the marginal propensity to save.

Here's how you can calculate it:

1. Subtract the marginal propensity to save from 1. In this case, 1 - 0.35 = 0.65.
2. Then, divide 1 by the result from step 1. So, 1 / 0.65 = approximately 1.54.

Therefore, the size of the expenditure multiplier is 1.54 (rounded to one decimal point).