MPS Archives - EU Seguros
Tax Multiplier, MPS and MPC

Tax Multiplier, MPS and MPC

by | Dec 2, 2021 | economics, macroeconomics

The Multiplier Effect, MPC and MPS Let’s say I give you $1,000. This is 100%. Out of this $1,000 you save 20% and use the remaining to buy stuff. This means that the Marginal Propensity to Save is 20%, or $200, and the Marginal Propensity to Consume is 80% or...
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