NEW
Font size
WorksheetsDetermination of Income employment and output: Investment multiplier
Total questions: 20
Worksheet time: 10mins
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
Which of the following can be negative ?
APC
APS
MPC
MPS
Consumption Function is the Functional Relation between
Income and saving
Price level and consumption
Income and consumption
ALL OF THE ABOVE
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
If value of Investment Multiplier can be more then 5 if
MPC-MPS-0.5
MPC<=0.8
MPC>=0.8
MPS<0.2
When Income is Zero, Then saving will be
0
-ve
+ve
None of these
Whose value can be greater than I ?
APC
MPC
MPS
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
Theory of Determination of income and Employment is based on
Ex-ante
Ex-Post
Both A and B
None of the above
AD=
C+I
C x I
C + S
C/Y
What can be the Maximum value of Multiplier
infinite
10
1
0
If consumption function is 100 + 0.8Y then What will be the MPS ?
100
-100
0.8
0.2
Investment That changes with the change in income is called
Autonomous Investment
Induced Investment
Net Investment
Gross Investment
Value of Investment Multiplier can be more than 5 , if
MPC=MPS =0.5
MPC<=0.8
PMC>=0.8
MPS<0.2
If the MPC > MPS The value of Multiplier will be
greater than 2
Less than 2
Equal to 2
Equal to 5
AS curve Starts from
The origin point
below the origin point
above the origin point
none of these
