The Multiplier Effect, MPC, and MPS (AP Macroeconomics)
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The Multiplier Effect, MPC, and MPS (AP Macroeconomics)
In this video explain the multiplier effect and the marginal propensity to consume (MPC) and the marginal propensity to save (MPS). Keep in mind that the MPC plus the MPC must equal one. This is becuase there are only two things you can do with new income. Either spedning it or save it. Check out the Ultimate Review Packet for FREE: https://www ...
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