Economics · Macroeconomics
Which of these statements is true?
- 1Value of multiplier depends on investment.
- 2Multiplier increases with a rise in taxes.
- 3The value of multiplier is directly related to marginal propensity to save.
- 4The value of multiplier is directly related to marginal propensity to consume.✓
Correct answer
The value of multiplier is directly related to marginal propensity to consume.
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