Which of the following statements correctly explains the relationship between Marginal Propensity to Consume (MPC), Marginal Propensity to Save…
CA Foundation · Business Economics · PYQS · May 2026
Which of the following statements correctly explains the relationship between Marginal Propensity to Consume (MPC), Marginal Propensity to Save (MPS), and the value of the investment multiplier?
Suggested Answer and Working Notes:
Correct Answer: Option (A)
A. Higher the MPC more will be the value of investment multiplier
Topics: Determination of National Income
Related Questions in this Topic
- In the four-sector Keynesian model, the equilibrium income condition is:
- If, in the four-sector model, aggregate consumption and taxes are greater than aggregate income, it indicates that:
- Government of India recently launched ‘Make in India' programme. What will be its impact on Aggregate Demand of India?
- Which concept of national income best reflects economic welfare?
- Mixed income of self-employed includes: