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Question
If the marginal propensity to consume is greater than the marginal propensity to save, the value of the multiplier will be ______
Options
greater than 2
less than 2
equal to 2
equal to 5
MCQ
Fill in the Blanks
Solution
If the marginal propensity to consume is greater than the marginal propensity to save, the value of the multiplier will be greater than 2.
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Determination of Equilibrium Income in the Short Run - The Multiplier Mechanism
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