Question

Explain the relationship between investment multiplier and MPC. ​

Answer 1

Answer:

Investment Multiplier shares a direct positiverelationship with marginal propensity to consume. That is, higher the value of MPC, higher will be the value of investment multiplier and vive-versa. That is Higher the proportion of increased income spend on consumption, higher will be value ofinvestment multiplier.

Explanation:

please follow me

Answer 2

Answer:

Investment Multiplier shares a direct positive relationship with marginal propensity to consume. That is, higher the value of MPC, higher will be the value of investment multiplier and vive-versa. That is Higher the proportion of increased income spend on consumption, higher will be value of investment multiplier.

$<marquee>@babyineedyou<marquee>$