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 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

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

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 multiplier effect refers to the:

Option 1: Increase in consumption due to an increase in income
  

Option 2: Increase in investment due to an increase in consumption
    

Option 3: Increase in income due to an increase in investment

Option 4: Increase in income due to an initial change in spending