### Example 15

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In an economy, the entire increase in income is spent on consumption. What will
**

**
be the value of multiplies?
**

It is given that the entire increase in income is spent on consumption

it means,

MPC = 1

K = 1/ 1 - MPC

K = 1/ 1-1

K = 1/ 0

K = not defined

So, the value of multiplier is not defined

### NCERT Questions

**
No questions in this part
**

### Other Books

#### Question 1

**
What can be the maximum value of Multiplier?
**

The maximum value of multiplier can be infinity.

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