Question : The maximum value of multiplier is _.

Option 1: Infinity

Option 2: Zero

Option 3: One

Option 4: None of the above.

Question

Question : The maximum value of multiplier is _.

Option 1: Infinity

Option 2: Zero

Option 3: One

Option 4: None of the above.

Team Careers360 · Accepted Answer

Correct Answer: One

Solution : The maximum value of multiplier is infinity when the value of MPC is 1.
Hence, Option C is correct.

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Question : The maximum value of multiplier is _. Option 1: Infinity Option 2: Zero Option 3: One Option 4: None of the above.

Related Questions

Question : The minimum value of multiplier is _. Option 1: Infinity Option 2: Zero Option 3: One Option 4: None of the above.

Question : When income level is zero, the consumption is ___________. Option 1: Positive Option 2: Negative Option 3: Zero Option 4: None of the above.

Question : _________________ indicates that interest commitments have forced the government to borrow. Option 1: Low/zero primary deficit Option 2: Low/zero fiscal deficit Option 3: Low/zero revenue deficit Option 4: None of the above.

Question : When value of domestic currency is tied to the value of another currency, it is known as Option 1: Pegging Option 2: Parity value Option 3: Speculative Option 4: None of the above.

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Question : The maximum value of multiplier is _.

Option 1: Infinity

Option 2: Zero

Option 3: One

Option 4: None of the above.

Question : The minimum value of multiplier is _.

Option 1: Infinity

Option 2: Zero

Option 3: One

Option 4: None of the above.

Question : When income level is zero, the consumption is ___________.

Option 1: Positive

Option 2: Negative

Option 3: Zero

Option 4: None of the above.

Question : _________________ indicates that interest commitments have forced the government to borrow.

Option 1: Low/zero primary deficit

Option 2: Low/zero fiscal deficit

Option 3: Low/zero revenue deficit

Option 4: None of the above.

Question : When value of domestic currency is tied to the value of another currency, it is known as

Option 1: Pegging

Option 2: Parity value

Option 3: Speculative

Option 4: None of the above.