Value of multiplier will be infinite when,

CA Foundation · Business Economics · MTP · June 2024
Value of multiplier will be infinite when,
(A) A. MPC = 0
(B) B. MPC = 1
(C) C. MPS = 1
(D) D. NONE

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. MPC = 1

Topics: International Trade

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