Advertisements
Advertisements
Question
If MPC is less than one, it follows that ______
Options
(1 − b) i.e. MPS is zero
(1 − b) i.e. MPS is positive
(1 − b) i.e. MPS is negative
(1 − b) i.e. MPS is infinity
MCQ
Solution
If MPC is less than one, it follows that (1 − b) i.e. MPS is positive
Explanation:
MPC is represented by b. When b is smaller than 1, 1 − b must be positive, or 1 − b > 0.
shaalaa.com
Is there an error in this question or solution?