Use app×
QUIZARD
QUIZARD
JEE MAIN 2026 Crash Course
NEET 2026 Crash Course
CLASS 12 FOUNDATION COURSE
CLASS 10 FOUNDATION COURSE
CLASS 9 FOUNDATION COURSE
CLASS 8 FOUNDATION COURSE
0 votes
124 views
in Economics by (88.8k points)
closed by
Higher the value of MPC, more is the value of multiplier

1 Answer

0 votes
by (79.1k points)
selected by
 
Best answer
Consider, K=1/1-MPC We can clearly see that multiplier (K) is directly related to Marginal propensity to consume(MPC). So, higher the value of MPC , more is the value of a multiplier.

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

Categories

...