multiplier and accelertor Flashcards
1
Q
what is the multiplier
A
where the initial injection into the economy leads to an overall increase in national income
2
Q
accelerator
A
where a rise in national income causes a rise in investment
3
Q
what is the formula for mpc
A
change in consumption / the change in income
4
Q
what is the formula for mps
A
change in savings / change in income
