Welcome to Westonci.ca, the place where your questions are answered by a community of knowledgeable contributors. Experience the ease of finding precise answers to your questions from a knowledgeable community of experts. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields.
Sagot :
0.2 is the value of the marginal propensity to save (mps). The multiplier's value would be 5.
Briefing:
Multiplier = 1 / marginal saving propensity (MPS)
= 1 / 0.2
= 5.
What does marginal propensity mean?
The percentage of an overall salary increase that a customer spends on purchasing goods and services rather than saving is known as the marginal propensity to consume (MPC) in economics.
How is marginal propensity determined?
By dividing the change in consumer spending (C) by the change in disposable income (I), the MPC formula is created. Formula for the marginal propensity to consume is (C1 - C0) / (I1 - I0), where C0 is the initial amount spent by consumers.
To know more about Marginal Propensity visit:
https://brainly.com/question/19089833
#SPJ4
Thank you for your visit. We are dedicated to helping you find the information you need, whenever you need it. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Stay curious and keep coming back to Westonci.ca for answers to all your burning questions.
