What is minimum value money multiplier

Minimum - 1
  • -1
Minimum value of multiplier is 1.As the Multiplier depends on MPC.So,When MPC is at its lowest e.g.0,then 1/1-0 will be equal to one.
  • 4
The minimum value of investment multiplier is 1.
Investment multiplier=11?mpc
so, when value of mpc=0, investment multiplier=1.
  • -3
The minimum value of investment multiplier is 1.
Investment multiplier=1/1?mpc
so, when value of mpc=0, investment multiplier=1.
  • -2
the higher the LRR the lower the value of money multiplier.
AS Money Multiplier = 1/LRR

  
 
  • 1
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