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प्रश्न
In a hypothetical economy, if entire additional income is consumed, the value of investment multiplier would be ______.
पर्याय
One (1)
Zero (0)
Between zero (0) and one (1)
Infinity (∞)
MCQ
रिकाम्या जागा भरा
उत्तर
In a hypothetical economy, if entire additional income is consumed, the value of investment multiplier would be Infinity (∞).
Explanation:
If all increased income is utilised, the change in savings = 0.
MPS = 0 in such case
K = `1/(MPS) = 1/0` = Infinity
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