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Doctors Medicines MCQs Q&A

If the value of Marginal Propensity to Save is 0.4, what will be the value of Investment Multiplier?

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1 Answers

If   MPS = 0.4 then value of

K = 1/MPS

= 1/0.4 = 1/1 x 10/4

K = 2.5

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