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

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

Team Careers360 · Accepted Answer

Correct Answer: 0.5

Solution : $K=\frac{Change \, in\, income}{Change \, in\, investment}$

$K=\frac{5000}{10000}$

$K=0.5$

Hence, Option D is correct.

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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: 2Option 3: 1Option 4: 0.5

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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 : 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 : 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

Question : In an economy, investment has increased by Rs.250 crore. If marginal propensity to consume is 3/5, calculate increase in national income.
Option 1: 500
Option 2: 600
Option 3: 625
Option 4: 800

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