Calculate the value of Investment Multiplier.

CBSE 2020 Class 12 Economics Delhi Set 1

Answer the following questions based on the data given below :

(i) Planned Investments

= \text{₹} 100

crore.

(ii)

C = 50 + 0.50 Y

Question : 21 of 46

Marks: +1, -0

Calculate the value of Investment Multiplier.

Solution:

MPC=0.5

K=\frac{1}{1-mpc}=\frac{1}{1-0.5}

=\frac{1}{0.5}

K=2

Go to Question:

Prev Question

Next Question