in an economy investment increase by RS. 120 crore the value of multip – InterviewSolution

InterviewSolution

1.	in an economy investment increase by RS. 120 crore the value of multiplier is 4. Calculate MPC .
Answer» `K= (1)/(1-MPC) or 4=(1)/(1-MPC)` `4-4MPC=1or 4MPC =4-1=3 ` ` or MPC=(3)/(4)=0.75`

Discussion

No Comment Found

Related InterviewSolutions

can consumption exceed income ? If yes , what is saving then?
What is the defference between voluntary unemployment and involuntary unemployment ? State the significance of this distinction .
Give meaning of involuntary unemployment .
if planned saving are greater than planned investment , what will be its effect our inventories ?
Underemployment equilibrium indicates excess supply in the economy
what is equilibrium output ?
break - even point is struck when saving is equal to zero .
Although propensity to consume is fairly high in india yet manufacturing sector india shows a low rate of growth due to low demand , why is it so ?
give menings of (i) Ex- ante saving ,(ii) ex-ante investment ,(iii) ex- ante consumption and (ic) Ex- ante aggregate demand .
what happens to the demand for credit in the economy when repo rate is increased ?