Income determination and Multiplier

If MPC is 0.6 , the investment multiplier will be

• 1.67

• 2.5

• 6

• 4

The maximum value of multiplier is _____________ when the value of MPC is __________ .

• Infinity, zero

• Infinity, one

• One, infinity

• None of these

When economy decides to save the whole of its additional income, then value of investment multiplier will be

• 1

• Intermediate

• 0

• Infinity

When aggregate demand is greater than aggregate. Supply, inventories

• Fall

• Rise

• Do not change

• First fall then rise

If MPS is 0.30, Autonomous consumption is Rs. 50 crores and investment is Rs. 100 crores, then equilibrium income will be

• 500 cr

• 150 cr

• 300 cr

• 45cr