Which of the following must be true to have a closed economy with no government, and yet the value of the investmet multiplier still increase?

Assessment: JAMB UTME - Economics - 2023 Subject: Economics

Question 1 Report

Which of the following must be true to have a closed economy with no government, and yet the value of the investmet multiplier still increase?
Answer Details
Investment multiplier (K) is a function of two factors; The MPS and MPC. If MPC is high, K will also be high but if MPC is low, K will also be low. on the other hand, If MPS is high, K will be low and if MPS is low, K will be high ( since there is an inverse relationship between MPS and K).
Read lesson note on Theory Of Costs (JAMB)
Read lesson note on The Theory Of Consumer Behaviour (JAMB)
Read lesson note on The Theory Of Demand (JAMB)
Read lesson note on Market Structure (JAMB)
View Answer

Related Questions

1

The part of income after tax that is not consumed is defined as
2

The "velocity" of money is
3

The short run can be defined as the period of time during which
4

Which of the following is an example of free good?
5

An industry is
6

The marginal propensity to consume is
7

A tariff is a tax imposed on
8

The demand for a good is price inelastic if

Download The App On Google Playstore

Everything you need to excel in your exams

Green Bridge CBT Mobile App
Personalized AI Learning Chat Assistant
200,000+ Exam Questions Across IGCSE, JAMB, WAEC & NECO
Over 3,900 Lesson Notes
Offline Support - Learn Anytime, Anywhere
Green Bridge Timetable
Literature Summaries & Potential Questions
Track Your Performance & Progress
In-depth Explanations for Comprehensive Learning