if saving curve is parallel to x-axis , value of multiplier is ___________
Dear student
if saving curve is parallet to x -axis, value of multiplier is infinity
for example, if it is given saving is parallel to x axis, it means saving is constant.
we assume all the figures.
Regards
if saving curve is parallet to x -axis, value of multiplier is infinity
for example, if it is given saving is parallel to x axis, it means saving is constant.
| y(income) | saving | mps=change in saving/change in income | k = 1/mps |
| 100 | 50 | - | - |
| 200 | 50 | o/100 = 0 | 1/0=infinity |
| 300 | 50 | 0/100 = 0 | 1/0=infinity |
Regards