If Mpc = 0, the Value of the Multiplier Is: (Choose the Correct Alternative) - CBSE (Arts) Class 12 - Economics
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If MPC = 0, the value of the multiplier is: (Choose the correct alternative)
c. Between 0 and 1
We know that
Multiplier (k) = `1/(1- MPC) = 1/(1- c)`
`= 1/(1- 0) = 1`
Is there an error in this question or solution?
Solution If Mpc = 0, the Value of the Multiplier Is: (Choose the Correct Alternative) Concept: Investment Multiplier and Its Mechanism.