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.

You might be interested in

Which of the following reflects perceived weaknesses in the current two-party system? Neither party will take a firm stance on i

jek_recluse [69]

Answer: Neither party will take a firm stance on issues because of the large number of voters they attract

Explanation: I found this post cuz I was searching for the answer to the same quiz question n there were no answers so I chose all the above n I got it wrong so I clicked review n K12 says the correct answer was the one I typed above

5 0

2 years ago

Write the sentences correctly observing punctuatin and capitalization.

miss Akunina [59]

Answer:

1. José and Rosa are helpful children.

2. I like to plant vegetables.

3. The pupils study so well.

4. My mother takes care of me.

5. We eat healthy foods.

Explanation:

7 0

3 years ago

Libro emma y las señoras del narco pdf gratis descargar.

Korvikt [17]

<h2>"Emma y las otras señoras del narco"</h2>

Este es un libro de la autora mexicana Anabel Hernández publicado en el año 2021. Hernández es periodista de investigación y escritora, tiene ocho libros publicados y ha recibido varios premios a lo largo de su carrera, ya que se dedica especialmente a la investigación periodística del narcotráfico.

El libro <em>"Emma y las otras señoras del narco" </em>desarrolla específicamente a las mujeres que rodean este mundo del narcotráfico en México.

Esta es una descripción del libro, ya que no hay una pregunta específica en relación a la autora o al libro.

Puedes chequear más información sobre el narcotráfico en México en el siguiente link brainly.com/question/365499?referrer=searchResults

6 0

2 years ago

1) What is the name of the first stage in the thunderstorm process? 2) During which stage of a thunderstorm does rain begin to f

Alenkinab [10]

Most thunderstorms form by a cycle that has three stages: the cumulus stage, mature stage, and dissipating stage. The sun heats the Earth's surface during the day. The heat on the surface and warms the air around it. Since warm air is lighter than cool air, it starts to rise (known as an updraft)

8 0

4 years ago

Read 2 more answers

Provide a full definition of the concept....poverty

Ronch [10]

Poverty is defined as the scarcity or the lack of a certain amount of material, possession, or money. Poverty is a multifaceted concept, which may include social, economic, and political element.

4 0

3 years ago