Suppose that the marginal propensity to save (MPS) equals 0.2. The value of the multiplier would be
A) .8.
B) 1.25.
C) 2.
D) 5.
Answer: D
Suppose that the marginal propensity to save (MPS) equals 0.2. The value of the multiplier would be
A) .8.
B) 1.25.
C) 2.
D) 5.
Answer: D