answersLogoWhite

0

According to Keynes, if MPS = 1 then, in a closed system, MPC must be 0. The only alternative is to borrow - which defeats the purpose of saving all the marginal increase in income! Therefore, it is possible but most unlikely.

User Avatar

Wiki User

9y ago

What else can I help you with?

Continue Learning about Movies & Television

Relationship between MPC and multiplier?

Relationship if: MPC decreases, K (Multiplier) will be weaker MPC increases, K will be stronger MPC = o(zero), K = 1 MPC = 1, K= infinity in real life: K = more than 1 & less than infinity MPC = less than 1 & more than 0 Assumptions: K works better in a closed economy (no foreign trade) K works better in an economy which has not reached full employment level


What is the proof of 0 factorial equals 1?

Well, 0! (the mathematical sign for "factora") is actually 0 itself. ... So that leads us to the question "Is 1 equal to 0?" Although many people have tried to make proof that this is true, it's not. The only way that I can disprove this is that 0+0=0, and 1+1=2. If 0 really did equal 1, then it would also equal 2 (1+1). With that being said, all numbers would then equal 0. So this pattern would include numbers like pi, 5.7892, 0.75, and every other decimal. HOWEVER, this is NOT possible because, for example, 0.75 (which supposedly equals 0) can be converted to the fraction 3/4. Any fraction just simply means *numerator* divided by *denominator*. So, if 0=3&4, the fraction is really 0/0 (which means 0 divided by 0). It is absolutley IMPOSSIBLE to divide by zero. So, no. 0! does not equal 1.


How do you factor -x square plus 10x-25 equals 0?

4x2-4x-3=0 can be written as (2x-3)(2x+1)=0 Anything times by 0 equals 0 ( the zero property of multiplication) therefore we need to make each one of these terms in brackets equal to 0. so 2x-3=0 giving x=3/2 and 2x+1=0 giving x=-1/2


What values of x will make the polynomial 0 if its factors are x - 6 and x - 3?

If a polynomial has factors x-6 and x-3 it will equal 0 if either factor equals 0 since the other factor then would be multiplied by 0. ie. 0 * (x-6)=0 and 0 * (x-3)=0. so x=3 or 6


How do you factor 100x2-81 equals 0?

100x2-81

Related Questions

What is multiplier and explain the working of it?

Multilplier is the ratio by which a given increase in investment brings about an increase in the national income. The extent of the increase in income ranges from 1 to infinity depending on the mariginal propensity to consume (MPC) and marginal propensity to save (MPS). Multiplier is symbolised by the aphabet "K" and its value is calculated as under:1 1K = ------------------------- = -----------------------1-MPC MPSIf MPC =1, K = infinity and if MPC = 0, K = 1 and in between there are numerous ratios, depending on the data in a question.Multiplier can also be defined as the reciprocal of marginal propensity to save because K = 1/MPS


You consume all your income at every level of income Draw your consumption and saving functions what are your MPC and MPS?

If you consume all your income at every level of income, your consumption function is a straight line at a 45-degree angle from the origin, indicating that consumption equals income (C = Y). In this scenario, your Marginal Propensity to Consume (MPC) is 1, since any additional income is entirely consumed. Consequently, your Marginal Propensity to Save (MPS) is 0, as there is no saving occurring at any income level. The saving function would be a horizontal line at zero, reflecting that savings do not increase regardless of income.


What does 0 squared equal?

It equals 0. Zero times zero equals zero.


What is 7x0 equal?

7x0 equals 0


What does 0-4 equal?

4


What does 1x2x3x4x5x6x7x8x9x0 equal?

It equals 0 because any number times 0 equals 0


What would you suggest when A crossB equals 0 and AB equals 0?

Assuming that cross means 'divide' B is equal to 0


A fraction with a zero in the numerator equals to what?

It is equal to 0.


What is a 0 in denominator equal to?

zero equals zero


Does 0 squared equal 1?

No, it equals 0. If you have nothing, and you multiply it by nothing, you still have nothing.


What does ΣF equals 0 mean?

the sum of all answers is equal to 0


What does 0 equals 0 mean?

It just means that the value of 0 is equal to the value of 0, which is correct. It's like saying 2 equals 2, or 6 equals 6, or 52657 equals 52657... you get the point.