--%>

Why value of MPC is not greater than one

Why the value of MPC is not greater than 1?

Answer: This is because change in consumption can never be more than change in income.

   Related Questions in Macroeconomics

  • Q : Invesstment multiplier what can be the

    what can be the minimum value of investment multiplier?

  • Q : Demand curves when longer periods are

    Whenever longer periods are considered and hence bigger ranges of adjustments (that is, substitutions) become probable, demand curves tend to become: (i) Flatter, and therefore do supply curves. (ii) Flatter, as supply curves become steeper. (iii) Ste

  • Q : Repayment of loan-Capital expenditure

    Why the repayment of loan is a capital expenditure? Answer: Repayment of loan is taken as a capital expenditure since it diminishes the liabilities of Government.

  • Q : Fox I don't know how to make him stop

    I don't know how to make him stop dancing

  • Q : Define Depreciation Depreciation of a

    Depreciation of a currency signifies fall in value of domestic currency in terms of foreign currency. Illustration: When value of rupee in terms of US dollars falls, state from Rs. 45 to Rs. 50 per dollar, it will be a condition of depreciation of Ind

  • Q : Difference between

    Elucidate the differences among the frictional, structural, and cyclical forms of unemployment.

  • Q : Principles of macroeconomics what are

    what are the four factor of economic growth

  • Q : Subjective worth of Consumer Surplus

    The consumer gains from being capable to purchase at a single price rather than paying all that the particular quantity of the good is subjectively worth are: (i) Adverse selections. (ii) Market exploitation. (iii) Consumer surpluses. (iv) Moral hazards.

  • Q : Internet technology in airline

    Speculate regarding the behavior which could result from Internet technology in airline transactions and propose 2 or more strategies to deal with them.

  • Q : What is Equilibrium quantity

    Equilibrium quantity: It is the quantity supplied and the quantity demanded at equilibrium price.