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Define Multiplier - Economics

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प्रश्न

Define multiplier

उत्तर

Multiplier is the ratio of increase in national income due to an increase in investment.

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Investment Multiplier and Its Mechanism
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2017-2018 (March) All India Set 3

संबंधित प्रश्न

What is the relation between marginal propensity to consume and multiplier?


Calculate the marginal propensity to consume if the value of multiplier.


If MPC = 1, the value of the multiplier is ______


Calculate the marginal propensity to consume if the value of multiplier is 4.


Define investment multiplier.


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.


If in an economy :
Change in initial Investments (∆I) = ₹ 500 crores
Marginal Propensity to Save (MPS) = 0.2

Find the values of the following:
(a) Investment multiplier (k),
(b) Change in final income (∆Y)

Keynesian multiplier establishes a relationship between ______ 


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)


Which of the following statements is true?


For a hypothetical economy, assuming there is an increase in the Marginal Propensity to Consume (MPC) from 80% to 90% and change in investment to be ₹ 1000 crore. 

Using the concept of investment multiplier, calculate the increase in income due to change in Marginal Propensity to Consume.


For a hypothetical economy, assuming there is an increase in the Marginal Propensity to Consume from 80% to 90% and change in investment to be ₹ 2000 crore. 

Using the concept of investment multiplier, calculate the increase in income due to change in Marginal Propensity to Consume.


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