Question

if the value of marginal propensity to consume is 0.5 then calculate the value of investment multiplier​

Answer 1

Explanation:

If MPC is 0.5 calculate value of investment multiplier . Given consumption function C=100+0.75 Y ` ( where ,C= consumption expenditure and Y=National income ) and investment expenditure Rs. ... (ii) consumption expenditure at equilibrium level of national income

Answer 2

Answer:

investment multiplier = (1)/1-mpc

1/1-0.5

=2

answer