What is multiplier
Multiplier: The Multiplier is the ratio of change in income by the change in investment. Multiplier (k) = ΔY/ΔI
Multiplier: The Multiplier is the ratio of change in income by the change in investment.
Multiplier (k) = ΔY/ΔI
What relationship does the MPC bear to the size of the multiplier? The MPS? What will the multiplier be when the MPS is 0, .4, .6, and 1
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