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Which factor affects Keynesian Multiplier? -

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Question

Which factor affects Keynesian Multiplier?

Options

  • Marginal Propensity to Save

  • Marginal Propensity to Consume

  • Both Marginal Propensity to Save and Marginal Propensity to Consume

  • None of the above

MCQ

Solution

Both Marginal Propensity to Save and Marginal Propensity to Consume

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Determination of Equilibrium Income in the Short Run - The Multiplier Mechanism
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