CBSE BOARD XII, asked by hshrey45, 6 months ago

What is the relationship between investment multiplier and MPC??

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Answered by dkss07

1

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.

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