Explanation:

- Option 1: MPC and multiplier have a direct relationship

- This statement is correct. The Marginal Propensity to Consume (MPC) is directly related to the multiplier. A higher MPC leads to a higher multiplier because more spending generates more income sequentially.

- Option 2: MPS and multiplier have an inverse relationship

- This statement is also correct. The Marginal Propensity to Save (MPS) is inversely related to the multiplier. A higher MPS means more saving and less spending, resulting in a lower multiplier.

- Option 3: Both (a) and (b)

- This is correct because both statements individually hold true.

- Option 4: None of the above

- This option is incorrect as both statements above are true.

- Correct Answer: Option 3 - Both (a) and (b)