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Consider the following statements denoting the relationship between marginal propensity to consume and value of multiplier1. Higher the marginal propensity to consume, higher is the multiplier2. Higher the marginal propensity to consume lower is the multiplier3. When the marginal propensity to consume is one, multiplier takes the value of infinity Which of the above statements is/are correct?

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Macroeconomics is a branch of economics that studies how an overall economy—the market or other systems that operate on a large scale—behaves.


Consider the following statements denoting the relationship between marginal propensity to consume and value of multiplier<br>1. Higher the marginal propensity to consume, higher is the multiplier<br>2. Higher the marginal propensity to consume lower is the multiplier<br>3. When the marginal propensity to consume is one, multiplier takes the value of infinity Which of the above statements is/are correct?






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