Question
If investment increases from 400 to 600 and income increases from 3,000 to 4,000, the MPS should be equal to
Answer: Option B
:
B
Multiplier (M) = ΔYΔA
= (4000−3000)(600−400)
= 5
MPS = 1M
=15
= 0.2
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:
B
Multiplier (M) = ΔYΔA
= (4000−3000)(600−400)
= 5
MPS = 1M
=15
= 0.2
Was this answer helpful ?
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