MPC

Value of multiplier

Change in spending

Change in Y *

0.5

?

         ΔC = + $50 million

?

0.6

?

         ΔI = − $10 million

?

0.75

?

         ΔC = − $25 million

?

0.8

?

         ΔI = + $20 million

?

0.9

?

         ΔC = − $2.5 million

?