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Question
Calculate the marginal propensity to consume if the value of multiplier.
RELATED QUESTIONS
Define multiplier
What is the relation between marginal propensity to consume and multiplier?
If MPC = 1, the value of the multiplier is ______
If MPC = 0, the value of the multiplier is: (Choose the correct alternative)
a. 0
b. 1
c. Between 0 and 1
d. Infinity
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.
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 ____________.
Keynesian multiplier establishes a relationship between ______
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 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.
