Certainly! To find the multiplier when given the marginal propensity to consume (MPC), you can use the following formula for the multiplier:
[tex]\[ \text{Multiplier} = \frac{1}{1 - \text{MPC}} \][/tex]
Here’s how you can solve it step-by-step:
1. The given marginal propensity to consume (MPC) is 0.9.
2. Substitute the value of MPC into the formula:
[tex]\[ \text{Multiplier} = \frac{1}{1 - 0.9} \][/tex]
3. Calculate the denominator:
[tex]\[ 1 - 0.9 = 0.1 \][/tex]
4. Divide 1 by the result of the denominator:
[tex]\[ \frac{1}{0.1} = 10 \][/tex]
So, the multiplier is 10.
Therefore, the correct answer is:
D. 10
