--%>

Relationship between MPS and multiplier

Relationship between MPS and multiplier:
K=1/1-MPC = 1/MPS or inverse relationship between MPS and the size of multiplier.

   Related Questions in Microeconomics

  • Q : Needs firm by maximizing profits for

    Maximizing profit needs every firm to manufacture the output level where marginal is: (i) revenue is maximized. (ii) cost equals the lowest possible  average total cost. (iii) revenue equals marginal cost. (iv) revenue exceeds ma

  • Q : Collective Bargaining-managers and

    The strikes tend to be resolved after worker’s savings trickle down to a discomfort region and there is an exhaustion of: (i) Public tolerance, causing government to set the fair settlement. (ii) Managers and inventories, causing the firms to increase their offe

  • Q : Income elasticity of demand when

    When average income rises from $18,000 to $22,000 yearly and yearly gasoline consumption per household increases from 1000 to 1500 gallons, in that case the income elasticity of demand for gas is: (1) in the inferior range. (2) 0.5. (

  • Q : Unregulated monopoly economic efficiency

    Mainly economists object to unregulated monopoly primarily since: (w) economies of large scale operation may be attained. (x) technological advance may be fostered. (y) economic efficiency would be promoted. (z) economic efficiency may be decreased.

  • Q : Key questions in evaluating a research

    Key questions in evaluating a research report: In brief, there are five key questions you, as a consumer of analytical work, should ask yourself as you are evaluating a research report. 1. What is the purpose of th

  • Q : Occurrence of disagreements between

    Disagreements between economists occur most commonly within the area of: (1) microeconomic theory. (2) normative aspects of economic policy. (3) positive statements. (4) "common sense." (5) mathematical economics. I need your point

  • Q : Income sufficient to physical survival

    The view about all people is entitled to income sufficient to comfortably sustain their physical survival is termed as the: (1) survival standard. (2) contribution standard. (3) needs standard. (4) standard deduction. (5) equality standard.

  • Q : Higher labor force participation rate

    Poverty stricken families are seldom described by: (w) a female headed household. (x) higher labor force participation rates. (y) more frequent illnesses. (z) higher birth rates and more children. Hey friends pleas

  • Q : Statement of the law of demand All as

    All as well equivalent, consumers will buy more of a good per time period the lower its price. This is the statement of the law of: (i) Diminishing returns. (ii) Demand. (iii) Supply. (iv) Markets. Can someone please help me in fin

  • Q : Marginal resource cost of labor For a

    For a gain maximizing competitive firm operating in the competitive labor market, the: (1) Marginal resource cost of the labor is similar to the wage rate. (2) Supply of the labor is perfectly inelastic. (3) Production quota is precisely proportional to the labor hire