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**.