Which of the following is true?

• Multiplier works in both the forward and backward direction.
• There is a positive relationship between MPC and multiplier.
• There is a negative relationship between MPS and multiplier.

1, 2 and 3

All the statements stands to be true, Investment multiplier is the ratio of change in income to the initial change in investment expenditure. It works in both the direction i.e. forward and backwards. If with an increase in the investment, income increases multiple times, it is known as forward looking multiplier. Whereas, when with decrease in investment, income decreases multiple times, it is known as backward looking multiplier. Multiplier is directly related to MPC whereas, inversely related to MPS.