Marginal propensity to save is 0.3. Calculate MPC and the expenditure multiplier.

Aggregate expenditure multiplier = 1 / MPS, MPS = 1 - MPC, so we have: aggregate expenditure multiplier = 1/ (1 - 0.4) = 5/3 asymp; 1.67

induced consumption expenditure = 0.9*Income

MPC or Marginal propensity to consume is also given as, (1-MPS).  Where, MPS is marginal propensity to save.So, if MPS =3/4Then MPC = (1-3/4)                 = 1/4 or 0.25

(4) 4If MPC = 3/4 or 0.75, multiplier is=1/(1-0.75) = 1/0.25 = 100/25 = 4

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D. $1,500

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(4) 1/4