Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Determination of Income and Employment

Question:

What will be the value of investment multiplier if, MPS is equal to zero?

Options:

1

0

None of the above

Correct Answer:

Explanation:

Investment multiplier: 

k= \(\frac{ 1}{ \text 1 - MPC}\) OR

k= \(\frac{ 1}{ MPS}\)

k= \(\frac{ 1}{0 }\)

k= ∞