In the equation δY = 1/(s + m) (δI + δX); 1/(s + m) is the foreign trade multiplier. Herein what do ‘s’ and ‘m’ represent?
1
Marginal Propensity to Save and Marginal Propensity to Import
2
Average Propensity to Save and Average Propensity to Import
3
Marginal Propensity to Consume and Marginal Propensity to Export
4
Average Propensity to Consume and Average Propensity to Export