Determination of Income and Employment — Economics STD 12 Humanities & Commerce — Question

1. If we put minimum of MPS i.e. 0, we get maximum value of multiplier, i.e., $\infty.$
2. As against it if we get maximum value of MPS, i.e., 1, if we get minimum value of multiplier, i.e.,1.
3. Hence, inverse relationship exists between MPS and multiplier. It means if MPS increases, the multiplier decreases and vice-versa,

$\text{MPS}\uparrow\rightarrow\text{K}\downarrow$