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If the marginal propensity to consume is greater than marginal propensity to save, the value of the multiplier will be (Choose the correct alternative) :(a) greater than 2(b) less than 2(c) equal to 2(d) equal to 5 |
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Answer» If the marginal propensity to consume is greater than marginal propensity to save, the value of the multiplier will be greater than 2. Hence, the correct option is (a). |
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