Question

Which of the following statements is true?

विकल्प

• When MPS = 1, the value of the investment multiplier is also 1.

• When MPS = 1, the value of the investment multiplier is 0.

• When MPS = 0.5, the value of the investment multiplier is 1.

• When MPS = l, the value of the investment multiplier is 0.5.

Answer 1

When MPS = 1, the value of the investment multiplier is also 1.

Explanation:

K = `1/"MPS"`

K = `1/1`

K = 1