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प्रश्न
Define investment multiplier.
उत्तर
Investment multiplier or simply 'multiplier' implies that any change in the investment leads to a corresponding change in the income and output by multiple times. That is, in other words, the change in the income and output is more than (or multiple times of) the change in investment. For example, if investment increases by 10%, then the corresponding increase in the income and output will be more than (let say 30% or 40%) the increase in the investment. Algebraically, investment multiplier is expressed as a ratio of the change in output to the change in investment.
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संबंधित प्रश्न
Define multiplier
What is the relation between marginal propensity to consume and multiplier?
The value of the multiplier is: (choose the correct alternative)
a. `1/"MPC"`
b. `1/"MPS"`
c. `1/(1-"MPS")`
d. `1/(MPC- 1)`
If MPC = 0, the value of the multiplier is: (Choose the correct alternative)
a. 0
b. 1
c. Between 0 and 1
d. Infinity
Explain the relationship between investment multiplier and marginal propensity to consume.
Answer the following question.
Find the value of additional investment made by the government, when MPC 05 and the increase in income (ΔY) = ₹ 1000.
Suppose in an economy, the initial deposits of ₹ 400 crores lead to the creation of total deposits worth ₹ 4000 crores.
Under the given situation the value of reserve requirements would be ____________.
Keynes derived Investment Multiplier from Kahn’s ______
The value of Keynesian Investment Multiplier depends on ______
The formula of investment multiplier in terms of MPS is (1)
The value of multiplier is ______
Which of the following statements is true?
For a hypothetical economy, assuming there is an increase in the marginal Propensity to Consume (MPC) from 75% to 90% and change in investment to be ₹ 1,000 crore.
Using the concept of investment multiplier, calculate the increase in income due to change in Marginal Propensity to Consume (MPC).
Mention any one difference between Induced investment and Autonomous investment.
Illustrate that the investment multiplier is inversely proportional to MPS.
