Question : Which of the following statement are true?
- The minimum value of multiplier can be zero and the maximum value of multiplier can be infinity.
- Multiplier is a forward-looking function. Increase in income by a number of times due to a single increase in investment.
Option 1: Both are true.
Option 2: Both are false.
Option 3: Statement 1 is true, statement 2 is false.
Option 4: Statement 1 is false, statement 2 is true.
Answer (1)
23rd Jan, 2024
Correct Answer:
Both are true.
Solution :
The minimum value of multiplier can be zero and the maximum value of multiplier can be infinity.
Multiplier is a forward-looking function. Increase in income by a number of times due to a single increase in investment.
Hence, Option A is correct.
Comments (0)
