Answer:
0.75
4
Explanation:
Marginal propensity to consume is the proportion of income that is consumed.
It is assumed that deposable income is either saved or spent.
So if 25% of income is saved, (100% - 25%) 75% is spent.
Spending multiplier = 1 / marginal propensity to save = 1 / 0.25 = 4
