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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

Calculate the marginal propensity to consume if the value of 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 = 1, the value of the multiplier is ______


Explain the relationship between investment multiplier and marginal propensity to consume. 


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)

Keynes derived Investment Multiplier from Kahn’s ______ 


The value of Keynesian Investment Multiplier depends on ______ 


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).


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.


If a linear consumption curve takes a parallel shift downwards, the value of investment multiplier will ______.


Mention any one difference between Induced investment and Autonomous investment.


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