Answer to: Describe the relationship between the marginal propensity to consume (MPC) and multiplier (m). By signing up, you'll get thousands of...
The marginal propensity to save (MPS) is similarly found by dividing the change in saving by the change in income.What are MPC and MPS? The participation of individuals and households in the economy involves a never-ending tradeoff between consumption and savings. Every dollar earned can be ...