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प्रश्न
If a linear consumption curve takes a parallel shift downwards, the value of investment multiplier will ______.
विकल्प
fall
rise
be doubled
not change
उत्तर
If a linear consumption curve takes a parallel shift downwards, the value of investment multiplier will not change.
Explanation:
If the linear consumption curve shifts downward in parallel, there is a change in autonomous consumption but no change in MPC. The investment multiplier is solely determined by MPC. If the MPC does not change, the investment multiplier does not change.
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संबंधित प्रश्न
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c. `1/(1-"MPS")`
d. `1/(MPC- 1)`
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Define investment multiplier.
How is investment multiplier related to marginal propensity to consume?
Explain the relationship between investment multiplier and marginal propensity to consume.
Answer the following question.
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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.
Explain the concept of Investment Multiplier using a diagram.
Mention any one difference between Induced investment and Autonomous investment.
