the larger the mps, the larger the multiplier.\na. true\nb. false
the larger the mps, the larger the multiplier.\na. true\nb. false
Answer
Brief Explanations:
The multiplier formula is $\frac{1}{MPS}$. As MPS (marginal - propensity to save) increases, the value of the multiplier $\frac{1}{MPS}$ decreases. For example, if MPS = 0.1, the multiplier is 10; if MPS = 0.2, the multiplier is 5.
Answer:
B. False