One divided by the marginal propensity to save (MPS) is the formula for
A) one minus the multiplier.
B) the inverse of the multiplier.
C) the multiplier.
D) autonomous consumption.

Question

Quizplus · Accepted Answer

The multiplier is calculated as 1 divided by the marginal propensity to save (MPS), indicating how much total output will change in response to a change in spending.

One Divided by the Marginal Propensity to Save (MPS) Is