English

Can the value of investment multiplier be zero? Explain.

Advertisements
Advertisements

Question

Can the value of investment multiplier be zero? Explain.

Explain
Numerical
Advertisements

Solution

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

K = `1/S`

= `1/1`

= 1

shaalaa.com
  Is there an error in this question or solution?
Chapter 12: Theory of Income and Employment - Thinking Beyond [Page 233]

APPEARS IN

Frank Economics [English] Class 12 ISC
Chapter 12 Theory of Income and Employment
Thinking Beyond | Q 3. | Page 233
Share
Notifications

Englishहिंदीमराठी


      Forgot password?
Use app×