Question:

Based on the following diagram answer the question:
Alternative Text
Identify the correct statement from the following statements :

Updated On: Mar 1, 2025
  • MPS and investment multiplier are directly related to each other
  • MPS and investment multiplier are inversely related to each other
  • MPC and investment multiplier are directly related to each other
  • MPC and MPS both have no relation with investment multiplier
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The Correct Option is B

Solution and Explanation

The correct option is (B): MPS and investment multiplier are inversely related to each other
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