Practicing Success
Which one of the following saving functions corresponds to the investment multiplier of 5? |
S=-20+0.25 Y S=-40+0.75Y S=-60+0.20Y S=-75+0.60Y |
S=-60+0.20Y |
We know that value of k = 5 , from this formulae we can find out the value of MPS. , Thus, MPS =\(\frac{1 }{ 5}\) = 0.2 |