English

If MPS = 0, the value of multiplier will be ______

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Question

If MPS = 0, the value of multiplier will be ______

Options

  • 2

  • 1

  • 0

  • ∞

MCQ
Fill in the Blanks
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Solution

If MPS = 0, the value of the multiplier will be ∞.

Explanation:

K = `1/"MPS"`

K = `1/0`

K = ∞

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Chapter 12: Theory of Income and Employment - TEST YOURSELF QUESTIONS [Page 243]

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Frank Economics [English] Class 12 ISC
Chapter 12 Theory of Income and Employment
TEST YOURSELF QUESTIONS | Q 22. | Page 243
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