When investment multiplier is 1 the value of MPC is?

When investment multiplier is 1, the value of marginal propensity to consume is zero.

When the investment multiplier is 1 the value of MPC is zero?

When investment multiplier is 1, the value of marginal propensity to consume is zero.

What is the minimum and maximum value of MPC?

(i) Minimum value of multiplier is 1 because minimum value of MPC can be zero. (ii) Maximum value of multiplier may be – (infinity) because maximum value of MPC can be 1.

What is the value of multiplier?

Multiplier(k) => Change in income / change in investment = 1/ MPS(s) where s is the marginal propensity to save.

What is the value of multiplier if MPC is 1 3?

Therefore, the value of the multiplier is infinity.

What is the value of multiplier if MPC is 1 2?

Multiplier (k) = 1/MPS = 1/ 0.5 = 2.

What is the value of MPC when MPS is zero?

What is the value of MPC when MPS is zero? The value of MPC is equal to unity (i.e., 1) when MPS is zero since whole of disposable income is spent on consumption.

What can be the maximum value of MPC?

Therefore, the value of multiplier will be maximum when the value of MPC is either infinity or zero.

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