Minimum value of investment multiplier

Minimum value of investment multiplier:

Investment multiplier K=1/1-mpc
When mpc = 0 then K=1/1-0 = 1 that is the minimum value of investment multiplier

Related Questions in Microeconomics

Q : Price elasticity of demand I have a

I have a problem related to price elasticity of demand. The question is illustrated as "After the price of movie tickets rose, I spent less money on movie tickets." What can you infer regarding my price elasticity of demand?

Q : Range of market demand in market

When economies of scale in producing a product persist across the complete range of market demand as: (w) pure competition is the most efficient market structure. (x) competition will prevent monopolization of the industry. (y) compet

Q : Purely competitive firm maximizing

A purely competitive firm maximizes profit through producing where is: (w) P = ATC. (x) P = MR = MC. (y) PQ = TC. (z) AFC = AVC. I need a good answer on the topic of Economics problems. Please give

Q : Define autonomous investment Autonomous

Autonomous investment: Investment that is made up without depending on the gain of the enterprise.

Q : Problem onto public sector The word “

The word “public sector” signifies to: (1) Stockholders and households. (2) Investors and Consumers. (3) Households and investors. (4) Democratic voting systems. (5) All actions of government. Hey frien

Q : Shut down point in the short run A

A monopolist will shut down during the short run when its equilibrium price as: (w) equals short-run average cost. (x) exceeds marginal cost. (y) is less than average variable cost. (z) is less than average fixed cost.

Q : Perfectly demand elasticity On a

On a horizontal demand curve, there: (w) demand is perfectly elastic. (x) demand is perfectly inelastic. (y) the elasticity of demand varies. (z) demand is unitarily elastic. Can someone explain/help me with best s

Q : High demand facing relatively

Total revenue for Macho Man fake mustaches increased after the price raised from $15 to $17, showing that demand faced throguh Macho Man was: (i) relatively elastic. (ii) relatively inelastic. (iii) unitarily elastic. (iv) perfectly elastic. (v) perfe

Q : Falling probably interest rate The

The interest rate will probably fall when households decide to: (w) consume more currently, shrinking the loanable funds obtainable for business investments. (x) buy new homes in place of restoring their old ones. (y) increase the liquidity of their a

Q : Price inelasticity of supply The price

The price elasticity of supply is zero therefore supply is perfectly price inelastic within: (w) Panel A. (x) Panel B. (y) Panel C. (z) Panel D.

Discover Q & A

Leading Solution Library

Avail More Than 1440891 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1928054
Asked

3,689

Active Tutors

1440891

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment