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

Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsDetermination of Income and Employment1 Mark
Question
What is the relationship between MPS and multiplier?
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Answer

There is negative and inverse relationship between MPS and multiplier. Greater the MPS, smaller will be the value of multiplier and vice-versa.

$\text{K}=\frac{1}{\text{MPS}}$

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