Chegg What are MPC, MPS, and the spending multiplier

1 answer:

7 0

MPC stands for "marginal propensity to consume," which refers to a rise in consumer spending for every unit of income level achieved.

Marginal propensity to save (MPS) is the percentage of a person's income that they put away for savings for every unit that their income level rises.

Spending multiplier = Increase in income level for each unit increase in autonomous spending = 1/(1-MPC) = 1/MPS Spending multiplier = Increase in income level for each unit increase in autonomous expenditure. This is further explained below.

<h3>What is a multiplier?</h3>

Generally, the amount by which the return on investment is greater than the investment itself is referred to as the investment's return on investment (ROI).

In conclusion, Marginal propensity to save (MPS) is the percentage of a person's income that they put away for savings for every unit that their income level rises.

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The solutions that would be used to fill the blanks are:

sample space
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<h3>How to solve for the probability</h3>

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<h3>Complete question</h3>

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Identify the numbers of each of the following and enter the probability as a simplified fraction:

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There are ______ patients for each nurse daily.

P(N)=_______, is the probability that a patient will be assigned to a specific nurse.