Question

Which type of relationship is there between MPS and K ( Multiplier)?

1.Positive

2.negative

3. no relation

4.none of these​

Answer 1

Answer:

4. None of These

Explanation:

The Keynesian Multiplier is an economic theory that states that an increase in private consumer expenditure, investment expenditure, or net government spending (gross government spending minus government tax collection) increases overall GDP by more than the amount of the increase. As a result, if private consumption expenditure rises by 10 units, total GDP rises by more than 10 units. The marginal propensity to consume is the change in total consumption caused by a change in total income. The marginal propensity to consume (MPC) is a measure of how consumer spending changes when income changes. Using the aforementioned figures, the MPC is C / Y = 300/600 = 0.5.

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