If government (or investment) spending is increased by $10 with mpc = 0.75, then the multiplier will be

Multiplier = 4

Explanation:

Government spending multiplier denotes the multiplier by which the GDP increases in response to increase in government expenditure.

Government spending has multiple impact depending on the society's overall propensity to consume.

Suppose if government spends USD 1, and consumer A receives USD 1, spends 0.75 out of this USD 1, consumer B receives this USD 0.75 and he also spends 75% of this USD 0.75 he received, this cycle continues until the spending reduces to nil.

Therefore spending multiplier is used to calculate total impact of each USD spent by government. Following is the formula for multiplier

Multiplier = 1 / (1 - marginal propensity to consume)

Multiplier = 1 ( 1 - 0.75)

Multiplier = 4

answer; intensive use of a sales force and is relatively costly;