Describe the relationship between the size of the MPC and the multiplier. How does it compare to the relationship between the size of the MPS and the multiplier?
What will be an ideal response?
The size of the MPC and the multiplier are directly related. The size of the MPS and the multiplier are inversely related. In equation form, the multiplier = 1/MPS, or the multiplier = 1/(1 ? MPC).
Economics
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What will be an ideal response?
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