Question
If entire additional income is converted into additional consumption, the value of multiplier will be
Answer: Option D
:
D
Multiplier = 11−MPC
If entire additional income is converted into additional consumption, MPC = 1.
Therefore, the value of multiplier will be infinity.
Was this answer helpful ?
:
D
Multiplier = 11−MPC
If entire additional income is converted into additional consumption, MPC = 1.
Therefore, the value of multiplier will be infinity.
Was this answer helpful ?
More Questions on This Topic :
Question 2. Multiplier is estimated as....
Question 5. MPC + MPS > 1.....
Question 10. If MPC increases, the value of multiplier will....
Latest Videos
Latest Test Papers
Submit Solution