How Do You Calculate MPS Multiplier?
How Do You Calculate MPS Multiplier? MPS is used to calculate the expenditures multiplier using the formula: 1/MPS. The expenditures multiplier tells us how changes in consumers’ marginal propensity to save influences the rest of the economy. How do you calculate MPC and MPS? Mathematically, in a closed economy, MPS + MPC = 1, since