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If the marginal propensity to consume is greater than the marginal propensity to save, the value of the multiplier will be ______

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Question

If the marginal propensity to consume is greater than the marginal propensity to save, the value of the multiplier will be ______ 

Options

  • greater than 2

  • less than 2

  • equal to 2

  • equal to 5

MCQ
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Solution

If the marginal propensity to consume is greater than the marginal propensity to save, the value of the multiplier will be greater than 2.

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