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If the marginal propensity of consume is...

If the marginal propensity of consume is greater than marginal propensity to save, the value of the multiplier will be (choose the correct alternative).

A

greater than 2

B

less than 2

C

equal to 2

D

equal to 5

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SANDEEP GARG-INCOME DETERMINATION AND MULTIPLIER-MCQ
  1. At equillibrium level:

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  2. If MPC is 0.6 the investment multiplier will be:

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  3. The maximum value of multiplier is when the value of MPC is

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  4. When planned saving is less than planned investment, It indicates a si...

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  5. If MPC=MPS, the value of multiplier is:

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  6. Multiplier is related to MPC

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  7. When economy decides to save the whole of its additional income, the v...

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  8. refers to a situation when AD is equal to AS beyond the full employme...

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  9. The algebracic relationship between multiplier and MPC is

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  10. If saviing funciton of an economy is given as, S-=40+0.4(Y), then MPC ...

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  11. The value of multiplier is

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  12. If MPC =1 the value of multiplier is:

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  13. If MPC=0 the value of multiplier is

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  14. MPC=0.75 and as a result of Multiplier Effect, National Income increas...

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  15. When aggregate demand is greater than aggregate supply, inventories.

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  16. If C=20+0.80Y and Investment Expenditures is 50 crores, then Equilibri...

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  17. When planned saving is less than planned investment, then,

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  18. If MPS=0.20. and investment is increased by 400 crores, the total incr...

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  19. If MPS=0.30, Autonomous Consumptions=50crores and Investment=100crores...

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  20. If the marginal propensity of consume is greater than marginal propens...

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