Question : Higher the __ more will be the value of multiplier.
Option 1: MPS
Option 2: MPC
Option 3: APC
Option 4: APS
Correct Answer: MPC
Solution : There exist a direct relationship between MPC and the value of multiplier. Higher the value of MPC more will be the value of multiplier. Hence, Option B is correct.
Question : Multiplier is directly related to
Option 1: APC
Option 2: APS
Option 3: MPC
Option 4: MPS
Question : Multiplier is inversely related to
Question : The value of the multiplier is calculated as:
Option 1: 1 / MPS
Option 2: 1 / MPC
Option 3: 1 / (1 - MPC)
Option 4: 1 / (1 - MPS)
Question : APC+APS=
Option 1: 1
Option 2: 0
Option 3: 0.5
Option 4: 2
Question : Relationship of APC and APS with National Income can be represented as:
Option 1: Both APC and APS fall with increase in National Income
Option 2: Both APC and APS rise with increase in National Income
Option 3: APS fall, while APC rises with increase in National Income
Option 4: APC falls, while APS rises with increase in National Income
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