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प्रश्न
Mention any one difference between Induced investment and Autonomous investment.
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उत्तर
The primary distinction between induced and autonomous investment is that autonomous investment is income independent, whereas induced investment is income dependent. Induced investment is impacted by the level of revenue or output in the economy, whereas autonomous investment is unaffected by the business cycle and is decided by factors such as technical advancements or governmental decisions.
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संबंधित प्रश्न
Define multiplier
What is the relation between marginal propensity to consume and multiplier?
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 ______
If MPC = 0, the value of the multiplier is: (Choose the correct alternative)
a. 0
b. 1
c. Between 0 and 1
d. Infinity
How is the investment multiplier related to marginal propensity to consume?
Explain the relationship between the investment multiplier and marginal propensity to consume.
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 ____________.
Keynes derived Investment Multiplier from Kahn’s ______
The value of Keynesian Investment Multiplier depends on ______
Discuss the mechanism of investment multiplier with the help of a numerical.
The value of multiplier is ______
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).
If a linear consumption curve takes a parallel shift downwards, the value of investment multiplier will ______.
Explain the concept of Investment Multiplier using a diagram.
Illustrate that the investment multiplier is inversely proportional to MPS.
