An MPC equal to 0 implies a multiplier of 1, meaning that a $1 increase in autonomous expenditures would increase real GDP by only $1. Why does an MPC equal to 0 result in no multiplier effect?...

An MPC equal to 0 implies a multiplier of 1, meaning that

a $1 increase in autonomous expenditures would increase

real GDP by only $1. Why does an MPC equal to 0 result

in no multiplier effect? Conversely, an MPC equal to 1

implies an infinite multiplier, meaning that a $1 increase

in autonomous expenditures would increase real GDP by

an infinite amount. Why does an MPC of 1 result in an

infinite multiplier? Explain your answers using the logic

of the multiplier process.