The multiplier is reciprocal of marginal propensity to save ,dicuss

1.	The multiplier is reciprocal of marginal propensity to save ,dicuss
Answer» Answer: Since MPS is measured as RATIO of change in savings to change in income its value lies between 0 and 1. Also marginal PROPENSITY to save is opposite to marginal propensity to consume . Mathematically, In a closed economy , MPS + MPC = 1 Since, an INCREASE in one UNIT of income will be either CONSUMED or saved.

Answer»

Answer:

Since MPS is measured as RATIO of change in savings to change in income its value lies between 0 and 1. Also marginal PROPENSITY to save is opposite to marginal propensity to consume .

Mathematically,

In a closed economy , MPS + MPC = 1

Since, an INCREASE in one UNIT of income will be either CONSUMED or saved.

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The multiplier is reciprocal of marginal propensity to save ,dicuss​

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The multiplier is reciprocal of marginal propensity to save ,dicuss