Question
Find MPC when investment multiplier = 1.
Answer: Option C
:
C
M(multiplier) =11−MPC
Given that, 11−MPC=1⇒1=1−MPC
⇒ MPC = 1 - 1 = 0
Thus, when M = 1, MPC = 0.
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:
C
M(multiplier) =11−MPC
Given that, 11−MPC=1⇒1=1−MPC
⇒ MPC = 1 - 1 = 0
Thus, when M = 1, MPC = 0.
Was this answer helpful ?
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