If the entire additional income is saved in an economy, the value of investment multiplier will be

1

The correct answer is Option (2) → 1

K=1/ (1−MPC)

If the entire additional income is saved, then MPC = 0 and MPS = 1.​

Then K = 1 / (1 -0) = 1

That means any increase in investment will raise income by the same amount — there is no multiplied effect, because people are not spending their extra income.