Economy, asked by Pooranjoy4948, 10 months ago

What do you understand by Investment Multiplier ? What is the relationship between Marginal Propensity to Consume and Investment Multiplier ?

Answers

Answered by Anonymous
0

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.

Explanation:

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Answered by ibolbam
2

Explanation:

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.

Explanation:

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