As higher is the MPS
A)lower is the multiplier.
B)higher is the investment spending
C)higher is the equilibrium income.
D)all the answers are right

Name: As higher is the MPS A)lower is the multiplier. B)higher is the investment spending C)higher is the equilibrium income. D)all the answers are right
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Question

Quizplus · Accepted Answer

The multiplier is inversely related to the Marginal Propensity to Save (MPS); thus, as MPS increases, the multiplier decreases.

As Higher Is the MPS