Question

If MPC = MPS, the value of multiplier will be:

• A. $0$
• B. $1$
• C. $2$
• D. $\infty$

Answer 1

The correct option is C

$2$

If MPC = MPS, then, MPC = MPS = 0.5.

Multiplier = $\frac{1}{1-0.5}$

= 2