the greater the value of the marginal propensity to save part 4 a. the greater the value of the multiplier. b. the smaller the value of the multiplier. c. the greater the value of the marginal propensity to consume. d. the greater the value of autonomous consumption.

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04-11-2022
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the greater the value of the marginal propensity to save part 4 a. the greater the value of the multiplier. b. the smaller the value of the multiplier. c. the greater the value of the marginal propensity to consume. d. the greater the value of autonomous consumption.

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qwteddy qwteddy · Answer 1 · 2022-11-07T10:09:32-05:00

the greater the value of the marginal propensity to save option b. the smaller the value of the multiplier.

The fraction of increased income that is saved rather than consumed is known as the marginal propensity to save (MPS). According to socioeconomic level, MPS varies and is often higher. Economists use the marginal propensity to save (MPS) to measure the correlation between changes in income and changes in savings. It describes the portion of a pay boost that a customer saves as opposed to spending on goods and services.

The MPS shows what the entire household sector does with extra money, and more especially, what percentage is saved. The MPS reflects important facets of a household's activity and its spending patterns because saving is a complement to consuming. It has a % format.

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