Determination of income and output

The value of multiplier depends on

• investment

• income

• Marginal Propensity to consume

• Average Propensity to consume

Who is the author of the book The general Theory of Employment and Money

• Ricardo

• J.M Keynes

• J.B Ray

• Adam Smith

Value of Investment Multiplier directly related to MPC but inversely related with

• APC

• MPS

• APS

• NONE OF THESE

What will be the value of Multiplier if MPC = 0.75 ?

• 4

• 5

• 2

• 3

When Income is Zero, Then saving will be

• 0

• -ve

• +ve

• None of these

What will be the value of Multiplier if MPC=MPS ?

• 0

• 1

• 2

• none of the these

What is the relationship between Multiplier and MPC ?

• POSITIVE

• NEGATIVE

• NOT RELATED

• EQUAL MPC

Aggregate supply is equal to

• National Income

• Consumption + Savings

• Both A and B

• Aggregate Demand

AD=

• C+I

• C x I

• C + S

• C/Y

What can be the Maximum value of Multiplier

• infinite

• 10

• 1

• 0