Question

what will be the value of multiplier if entire
additional income is converted into additional
Consumption ?​

Answer 1

saving function for an economy is as S=-40+0.4Y, calculate savings at income level (y)=100. so change in savings is 0 because change in consumption = change in income.... hence MPC = 1 and MPS = 0... so multiplier will be 1/0 ie infinity... in second part.