Question : An increase of Rs.150 crore in investment leads to a rise of Rs.900 crore in the national income. Calculate the value of multiplier.
Option 1: 4
Option 2: 3
Option 3: 6
Option 4: 9

Question

Question : An increase of Rs.150 crore in investment leads to a rise of Rs.900 crore in the national income. Calculate the value of multiplier.

Option 1: 4

Option 2: 3

Option 3: 6

Option 4: 9

Team Careers360 · Accepted Answer

Correct Answer: 6

Solution : $K=\frac{\Delta Income}{\Delta Investment}$

$K=\frac{900}{150}\ \ K=6\ \ Hence, Option \, C\, is\, correct.$

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Question : An increase of Rs.150 crore in investment leads to a rise of Rs.900 crore in the national income. Calculate the value of multiplier.Option 1: 4Option 2: 3Option 3: 6Option 4: 9

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Question : An increase of Rs.150 crore in investment leads to a rise of Rs.900 crore in the national income. Calculate the value of multiplier.
Option 1: 4
Option 2: 3
Option 3: 6
Option 4: 9

Question : An increase in investment by Rs.500 leads to increase in national income by Rs.2000 crore. Calculate marginal propensity to consume.
Option 1: 5
Option 2: 4
Option 3: 3
Option 4: 5

Question : An increase in investment by Rs.200 leads to increase in national income by Rs.1400 crore. Calculate marginal propensity to consume.
Option 1: 0.45
Option 2: 0.35
Option 3: 0.85
Option 4: 0.65

Question : An increase in investment by Rs. 400 leads to increase in national income by Rs. 2000 crore. Calculate marginal propensity to consume.
Option 1: 0.80
Option 2: 0.75
Option 3: 0.60
Option 4: 0.50

Question : With increase in national income by Rs.5000 crore, investment increased by Rs.10000 crore, the value of multiplier is

Option 1: 5

Option 2: 2
Option 3: 1
Option 4: 0.5

Question : Suppose an additional investment of Rs. 6000 crore In an economy generates an additional income of Rs. 18000 crore. The value of multiplier is

Option 1: 3
.
Option 2: 6
Option 3: .33
Option 4: None of the above