If the marginal propensity to save decreases, the value of the multiplier will

Increase

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Decrease

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Remain constant

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Decrease as much as the decrease in MPS

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Solution

The correct option is A
Increase

If the marginal propensity to save decreases, the value of the multiplier will increase.

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If the ratio of marginal propensity to consume and marginal propensity to save is 8:2, the value of investment multiplier will be

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