Suppose the marginal propensity to consume (MPS) equals 0.20, an increase in autonomous investment of $100 will lead to an increase in real Gross Domestic Product (GDP) by:
Multiplier effect is an effect in economics, in which an increase in spending produces an increase in national income and consumption greater than the initial amount spent. If MPS = 0.20, then multiplier is m = 1/mps = 5, so an increase in autonomous investment of $100 will lead to an increase in real Gross Domestic Product (GDP) by 100*5 = $500.
The moment you’ve entered the education system is the moment you start to realize that, although studying is extremely important,…
APPROVED BY CLIENTS
What else can I say, I am confident enough to say thank you for the kind support, to experts your such a blessing to help others, like me, especially when we needed the most. Customer service thank you for the service too. I will keep you in my mind and recommend you to anyone. God bless !!!