When economy decides to save the whole of its additional income, then value of investmentmultiplier will be
Question
Solution 1
The value of the investment multiplier will be 1.
Here's the step-by-step explanation:
- The investment multiplier is a concept in Keynesian economics that measures the impact of a change in investment on total income. It is calculated as 1/(1-MPC), where MPC is the marginal propensity to consum Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
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