Multiplier Mechanism

What can be the minimum value of "K"

• 0

• 1

• 2

• 3

If value of MPC= .80 then what will be the value of K ?

• 3

• 4

• 5

• 8

If change in Investment is 50Cr. and MPS is 0.50 what will change in national income?

• 100Cr.

• 200 Cr

• 300 cr

• 400 cr

1-MPS= ?

• MPC

• APC

• APS

• 0 always

MPS and K are ......

• Positively related

• Negatively related

• not related

• None

If C= 10+0.75Y, Change in national income is 800 Cr., find the value of change in autonomous investment ?

• 400 Cr.

• 300 Cr.

• 200 Cr.

• 100 Cr.

Change in national income is 500 Cr., find the value of 'K' if change in autonomous investment is 100 Cr.

• 4

• 1

• 250

• 5

Concept of multiplier is based on the fact that ----

• expenditure of one person is income of another person

• expenditure of one person is liability of another person

• expenditure of one person is saving of another person

• none