If MPC = 0.9, then value of multiplier will be :

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Question

If MPC = 0.9, then value of multiplier will be :

Options:

A . 6

B . 9

C . 10

D . 12

Answer: Option C
:
C
Multiplier =

\frac{1}{1 - M P C}

=

\frac{1}{1 - 0.9}

= 10

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