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Can the value of investment multiplier be zero? Explain. - Economics

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प्रश्न

Can the value of investment multiplier be zero? Explain.

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संख्यात्मक
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उत्तर

No, because the minimum value of the multiplier is 1 when MPS = 1 (or MPC = 0).

K = `1/S`

= `1/1`

= 1

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अध्याय 12: Theory of Income and Employment - Thinking Beyond [पृष्ठ २३३]

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फ्रैंक Economics [English] Class 12 ISC
अध्याय 12 Theory of Income and Employment
Thinking Beyond | Q 3. | पृष्ठ २३३
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