Economy, asked by Gurveer5471, 1 year ago

Explain why MPC lies between '0' and '1'

Answers

Answered by mukheer1977
4
♡♡HEY MATE♡♡

○●Since the MPC is always greater thanzero and less than one (i.e. ), the multiplier is always between one and infinity ( ). If the multiplier is one, it means that the whole increment of income is saved and nothing is spent because the MPC is zero.●○

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