Question : The investment multiplier is 3. If there is an autonomous increase in investment spending of INR 800, what will be the change in equilibrium income?
Option 1: INR 2,300
Option 2: INR 2,400
Option 3: INR 2,800
Option 4: INR 3,200
Correct Answer: INR 2,400
Solution : The correct answer is (B) INR 2,400
Given that the investment multiplier is 3 and there is an autonomous increase in investment spending of INR 800, the change in equilibrium income can be calculated as follows:
Change in Equilibrium Income = Autonomous Change in Investment * Investment Multiplier
= INR 800 * 3
= INR 2,400
Question : The investment multiplier is 4. If there is an autonomous increase in investment spending of INR INR 1,000,
what will be the change in equilibrium income?
Option 1: INR 1,000
Option 2: INR 4,000
Option 3: INR 5,000
Option 4: INR 9,000
Question : The investment multiplier is 4. If there is an autonomous increase in investment spending of INR 500, what will be the change in equilibrium income?
Option 1: INR 500
Option 2: INR 2,000
Option 3: INR 1,000
Option 4: INR 2,500
Question : The investment multiplier is 2. If there is an autonomous increase in investment spending of INR 600, what will be the change in equilibrium income?
Option 1: INR 600
Option 2: INR 1,200
Option 3: INR 1,800
Option 4: INR 2,400
Question : The marginal propensity to consume (MPC) is 0.8. If there is an autonomous increase in investment spending of INR 1,500, what will be the change in equilibrium income?
Option 1: INR 1,200
Option 2: INR 1,500
Option 3: INR 7,500
Option 4: INR 6,000
Question : The marginal propensity to consume (MPC) is 0.75. If there is an autonomous increase in investment spending of INR 1,000, what will be the change in equilibrium income?
Option 1: INR 750
Option 2: INR 1,000
Option 3: INR 1,333.33
Option 4: INR 4,000
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