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Economics
Macro Economics: Determination of Income and Employment
Which two terms are inversely related?
MPC and multiplier
MPS and multiplier
Consumption and saving
Consumption and investment
As, k=\(\frac{1 }{ MPS}\) If MPS is 0.2 k= 5 and, MPS is 0.5 k= 2 Thus, we can say MPS and k works in opposite direction and are inversely related.