Question

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

Answer 1

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.