Advertisements
Advertisements
प्रश्न
Why does a one-time increase in investment fail to sustain the multiplier effect?
पर्याय
It leads to a permanent rise in saving
MPC becomes zero after one round
The income generated gradually fades back to the original level
It causes deflation in the economy
MCQ
Advertisements
उत्तर
The income generated gradually fades back to the original level
Explanation:
The multiplier needs continuous investment. A one-time injection raises income only temporarily.
shaalaa.com
या प्रश्नात किंवा उत्तरात काही त्रुटी आहे का?
