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question #16
16. Consider the following statements describing the relationship between marginal propensity to consume (m.p.c) and the value of the multiplier :
(a) Higher the m.p.c lower is the value of multiplier
(b) Higher the m.p.c higher is the value of multiplier
(c) If m.p.c=1, value of multiplier will be ∞
Which of the above statements is/are correct ?


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NET Paper 3 - Economics - Nov 2017