Economy, asked by QW111VA, 3 months ago

Why the value of multiplier increases with increase in the level of MPC in the economy?​

Answers

Answered by Anonymous
2

Answer:

The higher the MPC, the higher the multiplier—the more the increase in consumption from the increase in investment; so, if economists can estimate the MPC, then they can use it to estimate the total impact of a prospective increase in incomes.

Explanation:

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