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When MPC is equal to MPS, increase in in...

When MPC is equal to MPS, increase in income will be two thmes the increase in investment". Comment.

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The given statement is correct Equality betweenMPC and MPS signifies that both of them are equal to`0.5(as MPC+MPS=1).` Itmeans, Multiplier (k)`=(1)/(MPC)=(1)/(0.5)=2.` it proves that increase income will be two times the increase in inestment.
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