Giving reasons state whether the following statements are true or fals

1.	Giving reasons state whether the following statements are true or false: (a) When marginal propensity to consume is zero, the value of investment multiplier will be 1. (b) If the ratio of marginal propensity to consume and marginal propensity to save is 4: 1, the value of investment multiplier will be 4. (c) AD curve starts from X-axis.
Answer» Giving reasons state whether the following statements are true or false: (a) When marginal propensity to consume is zero, the value of investment multiplier will be 1. (b) If the ratio of marginal propensity to consume and marginal propensity to save is 4: 1, the value of investment multiplier will be 4. (c) AD curve starts from X-axis.

Giving reasons state whether the following statements are true or false: (a) When marginal propensity to consume is zero, the value of investment multiplier will be 1. (b) If the ratio of marginal propensity to consume and marginal propensity to save is 4: 1, the value of investment multiplier will be 4. (c) AD curve starts from X-axis.

Answer»

Giving reasons state whether the following statements are true or false:

(a) When marginal propensity to consume is zero, the value of investment multiplier will be 1.

(b) If the ratio of marginal propensity to consume and marginal propensity to save is 4: 1, the value of investment multiplier will be 4.