Question

Explain, using graphical representation, that the value of multiplier increases with

increase in the value of MPC.

(Hint: You have to draw two sets of two curves with different slopes)​

Answer 1

Answer:

The answer is in the picture which shows that when we use mpc=0.3, the multiplier is 1.42 and when we use mpc=0.7, so the multiplier increases to 3.33 with the graphical representation.