What relationship does the Marginal Propensity to Save bear to the size of the multiplier?

Posted on 03 March 2013 by Admin

Question by Bridget S: What relationship does the Marginal Propensity to Save bear to the size of the multiplier?
What relationship does the Marginal Propensity to Save bear to the size of the multiplier?

Someone’s answer:

Answer by Faz
Multiplier = 1 / MPS
This is an inverse relationship.
The higher the MPS, the smaller is the multiplier effect.

Give your answer to this question in Comments!