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Question
The value of the investment multiplier shows ______.
Options
there is a direct relationship between multiplier and marginal propensity to consume.
there is an inverse relationship between multiplier and marginal propensity to save.
both (a) and (b)
none of these
MCQ
Fill in the Blanks
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Solution
The value of the investment multiplier shows there is a direct relationship between multiplier and marginal propensity to consume and there is an inverse relationship between multiplier and marginal propensity to save.
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