1.

Justify the statement: (a) MPC and MPS are related to multiplier. (b) Economy cannot be at equilibrium, when ex-ante savings greater than ex-ante investments. (c) Investment increases with the increase in income.

Answer»

Justify the statement:

(a) MPC and MPS are related to multiplier.

(b) Economy cannot be at equilibrium, when ex-ante savings greater than ex-ante investments.

(c) Investment increases with the increase in income.



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