CBSE 2022 Class 12 Economics Delhi Set 1 (Term 2)
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Question : 15 of 21
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Tnvestment multiplier and Marginal Propensity to Consume are directly related to each other'. Explain with the help of numerical example.
Solution:
Investment multiplier and MPC are directly related to each other. It can be as follows:
If
then
If
then
Both are directly related with the increase in MPC, investment multiplier will increases.
If
then
If
then
Both are directly related with the increase in MPC, investment multiplier will increases.
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