Multiplier = 1 / (sum of the propensity to save + tax + import) The marginal propensity to save = 0.2. The marginal rate of tax on income = 0.2. The marginal propensity to import goods and services is 0.3. Click to see full answer. Correspondingly, how do you find the open economy multiplier?See the explanation below. In open economy, Multiplier= 1/mpc = 1/(mps + mpm); where mpc is marginal propensity for saving and mpm is marginal propensity for import. While calculating the multiplier there is marginal propensity to import in an open economy which makes the denominator larger and multiplier smaller. what are the types of multiplier? Types of multiplier: Employment Multiplier: It refers to type of a multiplier measure by Kahn’s where the number of employment is created, activated and supplied from the base or primary jobs. Fiscal Multiplier: Money Multiplier: Income Multiplier: Negative/Reverse Multiplier: Tax Multiplier: how do you work out the multiplier size? Example of the size of multiplier If mpt = 0.4, mpm =0.3 and mps = 0.1. Then mpw = 0.8. The marginal propensity to consume is 0.2. Therefore, the multiplier effect will be 1/0.8 = 1.25. Which is the multiplier?The number to be multiplied is the “multiplicand”, and the number by which it is multiplied is the “multiplier”. Usually the multiplier is placed first and the multiplicand is placed second; however sometimes the first factor is the multiplicand and the second the multiplier.