Suppose that when government lowers corporate taxes this results in an increase in business investment of $280 billion.  Further assume that  MPC = 0.93.                                          Calculate the value of MPS:   Calculate the value of the multiplier:     Compute the first three rounds of multiplier effects and cumulative effect on AD:                                                                                                                                                                                       Cumulative effect on AD:   1st cycle:                           2nd cycle:               3rd cycle:            Compute the total cumulative impact on AD after an infinite number of cycles (the "nth" cycle):

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A: Multiplier concept was developed by R.F. Khan in 1931.

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Q: Find the value of multiplier if MPS is 0

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