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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 multiplier and MPC?
✓

Answer

There is direct and positive relationship between MPC and multiplier. Higher the MPC, higher will be the value of multiplier and vice-versa.$\text{K}=\frac{1}{1-\text{MPC}}$

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