Match each Keynesian consumption / saving parameter with its formula:
A1-A, 2-B, 3-C
B1-B, 2-A, 3-C
C1-C, 2-B, 3-A
D1-A, 2-C, 3-B
Answer & Solution
Correct answer: A. 1-A, 2-B, 3-C
MPC is ΔC/ΔY. MPS is ΔS/ΔY (MPC+MPS=1). Multiplier k = 1/MPS.
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