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प्रश्न
Calculate the marginal propensity to consume if the value of multiplier is 4.
उत्तर
Y = C + I
ΔY = ΔC + ΔI
Dividing both sides by ΔY, we will obtain
K = 1/1-MPC
Given value of multiplier is 4, then MPC will be
`k = 1/(1-MPC)`
`4 = 1/(1 -MPC) = 4(1-MPC) = 1`
4 - 4MPC = 1
-4MPC = 1 - 4
-4MPC = -3
MPC= 0.75
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संबंधित प्रश्न
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a. 0
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c. Between 0 and 1
d. Infinity
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Explain the concept of Investment Multiplier using a diagram.
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