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If Marginal Propensity to Save (MPS) is 0.25 and the initial change in investment is ₹ 250 crores, then the final change in income would be ______. - Economics

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प्रश्न

If Marginal Propensity to Save (MPS) is 0.25 and the initial change in investment is ₹ 250 crores, then the final change in income would be ______.

विकल्प

  • ₹ 1000 crores

  • ₹ 1200 crores

  • ₹ 500 crores

  • ₹ 3500 crores

MCQ
रिक्त स्थान भरें
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उत्तर

₹ 1000 crores

Explanation:

ΔY = `Δ"I" xx 1/("MPS")`

ΔY = `₹ 250 xx 1/0.25`

= ₹ 1,000 crores

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2019-2020 (March) Delhi Set 1

संबंधित प्रश्न

AR curve is a horizontal straight line, the MR curve will be ______


Total output is maximum when marginal product is ______


Identify the correct pair of items from the following Columns I and II:

Columns I Columns II
(1) Marginal Rate of Substitution (MRS) (a) It states the real employment of the consumer from which he can purchase certain qualitative bundles of three goods at given price.
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(3) Budget set (c) It is quantitative combination of those bundles which a consumer can purchase from his given income at prevailing market prices.
(4) Consumer Budget (d) It is a qualitative combination of three goods which can be purchased by a consumer from his given expenses at given prices.

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Statement 1: Marginal revenue curve is parallel to the x-axis.

Statement 2: The slope of the marginal revenue curve is upward sloping.


Read the following passage and answer the question that follows:

The ordinal list revolution originates in the criticism of the psychological foundations of the theory of demand, namely, the principle of decreasing marginal utility as Alfred Marshall ([1890] 1898) used it. The rejection of hedonist hypotheses led Irving Fisher (1892) and Pareto (1896-97, 1900, 1909) to favour an objective or "positive" approach to economic concepts. The "ordinal list revolution" (Omarzabal 1995, 116) is grounded in a methodological transformation of economics that put the facts of objective experience as a foundation of economics and provided a research program for the ensuing years (Green and Moss 1993; Lewin 1996).
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Along the way, the recasting of the theory of choice along ordinal list lines raised a number of issues (about integrability, measurability, and complementarity) that would be progressively settled. The reasonable closing date for the ordinalist revolution is 1950, after Houthakker's (1950) and Samuelson's (1950) contributions.
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