EduFarming
Your list · 0हिं

Type at least two letters. Press Esc to close.

↑↓ navigate↵ openTAB cycle filter

Income Determination & the Multiplier · Question 47 of 58

Question 47

MediumOriginal question

Investment rises by ₹100 crore and the MPC is 0.8. In the second round, income rises by

Options for question 47

Show the answer and explanation
CorrectNot quiteAnswer C

Correct answer: C

Explanation

  1. Round 1: the ₹100 crore spent becomes income for those who produce the capital goods.

  2. Round 2: they spend 0.8 × 100 = ₹80 crore, which becomes others' income.

Concept
Second round
Typical time
70 s
Your time
—
The rule this testsThe multiplier round by round
Practise this chapter →

Ten questions from Income Determination & the Multiplier, at your own pace.

Practise this chapter →

Ten questions from Income Determination & the Multiplier, at your own pace.

Practise this chapterAll 58 questions in Income Determination & the MultiplierRevise the notes for Income Determination & the Multiplier