If MPS 1 4 the value of multiplier will be ........

If MPS =1/4, the value of multiplier will be :

- The Marginal Propensity to Save (MPS) is the fraction of additional income that is saved rather than spent.

- The formula for the multiplier is 1/(1-MPC), where MPC is the Marginal Propensity to Consume.

- Since MPS = 1/4, then MPC = 1 - MPS = 1 - 1/4 = 3/4.

- Plug in the value of MPC in the multiplier formula: 1/(1 - 3/4) = 1/(1/4) = 4.

- Option 1: 4 - This is the correct answer.

- Option 2: 2 - This is incorrect.

- Option 3: 8 - This is incorrect.

- Option 4: 6 - This is incorrect.

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