Question

in the way the multipler is related to MPS​

Answer 1

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 = . 4, multiplier = 2.5; MPS = .

Answer 2

Ànswè®

Explanation:

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 = . 4, multiplier = 2.5; MPS