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प्रश्न
Illustrate that the investment multiplier is inversely proportional to MPS.
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उत्तर
Investment multiplier `"(k)" = 1/"MPS"`. Higher MPS reduces k and lower MPS raises k.
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संबंधित प्रश्न
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
Calculate the marginal propensity to consume if the value of multiplier is 4.
Define investment multiplier.
How is the investment multiplier related to marginal propensity to consume?
Explain the relationship between the investment multiplier and marginal propensity to consume.
Find the value of additional investment made by the government when MPC = 0.5 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 ____________.
Keynes derived Investment Multiplier from Kahn’s ______
The formula of investment multiplier in terms of MPS is (1)
Which of the following statements is true?
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.
Mention any one difference between Induced investment and Autonomous investment.
