Economics: How to find MPC and Fiscal Multiplier?
I am in an economics class and me and my group are having a hard time figuring out one of the questions for it. We are suppose to survey 5 people asking what they would do with $1,000 dollars (how much they would save and much they would spend). Then it tells us that will give us a proxy for Marginal Propensity to Consume (MPC) which you can use to help calculate a fiscal multiplier. Then it says to tabulate all the results and determine how your group will use this information to get one MPC. We are just very confused on what this all means and how to find MPC and Fiscal Multiplier.