when mpc is greater than mps, the value of investment multiplier will be greater than 5. True or false, with reason

Dear Student,

The above statement is false. This is because MPC + MPS = 1.
Now, as MPC > MPS. Let us assume that MPC = 0.7 and MPS = 0.3.

Thus, k=11-MPC=11-0.7=3.33<5

Therefore, the above statement is false.


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