Question
There is a direct relationship between MPC and value of investment multiplier.
Answer: Option A
:
A
True, there is a direct relationship between MPC and value of investment multiplier. Higher the value of MPC, higher the investment multiplier and vice cersa. Because,
M=11−MPC
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:
A
True, there is a direct relationship between MPC and value of investment multiplier. Higher the value of MPC, higher the investment multiplier and vice cersa. Because,
M=11−MPC
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