How does the Keynesian multiplier relate to the marginal propensity to save?
1 Answer
Jan 24, 2016
#k=1/(1-MPC)=1/(MPS)#
Explanation:
Keynesian Multiplier -
#k = 1/(1 - MPC)#
#1 - MPC = MPS#
Hence -
#k = 1/(MPS)#
Thus Keynesian Multiplier can be calculated using
