*Which type of relation is found between MPC and the multiplier?*

1.	Which type of relation is found between MPC and the multiplier?
Answer» Answer: The MULTIPLIER EFFECT is the magnified increase in equilibrium GDP that occurs when any COMPONENT of aggregate expenditures changes. The greater the MPC (the smaller the MPS), the greater the multiplier. MPS = 0, multiplier = infinity; MPS = .

Which type of relation is found between MPC and the multiplier?

Answer»

Answer:

The MULTIPLIER EFFECT is the magnified increase in equilibrium GDP that occurs when any COMPONENT of aggregate expenditures changes. The greater the MPC (the smaller the MPS), the greater the multiplier. MPS = 0, multiplier = infinity; MPS = .

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*Which type of relation is found between MPC and the multiplier?*

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Which type of relation is found between MPC and the multiplier?