CBSE (Arts) Class 12CBSE
Share
Notifications

View all notifications

If Mpc = 0, the Value of the Multiplier Is: (Choose the Correct Alternative) - CBSE (Arts) Class 12 - Economics

Login
Create free account


      Forgot password?

Question

If MPC = 0, the value of the multiplier is: (Choose the correct alternative)

a. 0
b. 1
c. Between 0 and 1
d. Infinity

Solution

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.
S
View in app×