Sarthaks Test
0 votes
42 views
in Consumption and Investment Functions by (52.6k points)

It the MPC is 0.5, the multiplier is – 

(a) 2 

(b) 1/2 

(c) 0.2 

(d) 20

Please log in or register to answer this question.

2 Answers

+2 votes
by (52.1k points)

It the MPC is 0.5, the multiplier is 2.

0 votes
by (22 points)
K= 1/MPS

K = 1/ 0.5

K = 2

YES OPTION (A)

Related questions

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

...