We know that value of investment multiplier directly depends upon MPC. More MPC means more value of investment multiplier. It leads to more generation of national income Why does under developed economy underdeveloped even though there is more MPC? Explain.

We know that value of investment multiplier directly depends upon MPC.

1.	We know that value of investment multiplier directly depends upon MPC. More MPC means more value of investment multiplier. It leads to more generation of national income Why does under developed economy underdeveloped even though there is more MPC? Explain.
Answer» Under developed economies have expenditure on fulfilling the minimum needs for the people for the country, so much is not left for investment further.

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We know that value of investment multiplier directly depends upon MPC. More MPC means more value of investment multiplier. It leads to more generation of national income Why does under developed economy underdeveloped even though there is more MPC? Explain.

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