Explain the relationship between investment multiplier and MPC.
Share
Explain the relationship between investment multiplier and MPC.
Sign Up to our social questions and Answers Engine to ask questions, answer people’s questions, and connect with other people.
Login to our social questions & Answers Engine to ask questions answer people’s questions & connect with other people.
Answer:
Investment Multiplier shares a direct positiverelationship 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 ofinvestment multiplier.
Explanation:
please follow me