+3 votes
in Class 12 by kratos

If the Marginal Propensity to Consume (MPC) is 0.8, Calculate the Value of Investment Multiplier .

1 Answer

+5 votes
by kratos
 
Best answer

k = 1/ 1- mpc ⇒ k= 1/1-0.8 ⇒ k = 5

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