Income Determination and Multiplier

At equilibrium level:

• consumption = investment

• saving = investment

• aggregate demand = saving

• consumption = saving

If an investment of Rs. 10 crore results in an increase in income by Rs. 50 crore, then the value of multiplier will be:

• 5

• 4

• 2

• 10

On account of injections and withdrawals, equilibrium level of income undergoes

• a shift

• no shift

• a dispersal

• no change

If rhe value of MPC = 0.9 find the value of multiplier?

• 5

• 10

• 15

• 20

If MPS = 1, calculate the value of K.

• 1`

• 4

• 2

• 3

Relationship between MPC and multiplier is

• direct

• indirect

• proportional

• no relation

If MPS = 1 and increase in national income = Rs. 500 crore, calculate the increase in investment.

• 500 cr

• 40 cr

• 10 cr

• 2 cr

If MPC = 0.4, What will be change in saving when income increase by Rs. 100 ?

• Rs. 60

• Rs. 50

• Rs. 40

• Rs. 70

Equilibrium level of income can be determined at:

• full employment

• under full employment

• over full employment

• all of these

Multiplier is the ratio of change in income to a given change in

• supply

• demand

• investment

• capital stock