If MPC is 0.8, the investment multiplier is: MCQ with Answer and Explanation

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If MPC is 0.8, the investment multiplier is:

A. 8

B. 0.8

C. 5

D. 1.25

Answer: Option C

Solution (By JKSSB Mock Tests)

Multiplier = 1/(1 - 0.8) = 1/0.2 = 5.

This question belongs to: Economy GK Economy Set 1

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Question #1

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The 'Financial Stability Report' in India is published by:

A. SEBI

B. Ministry of Finance

C. Reserve Bank of India

D. NITI Aayog

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Correct Answer: Option C

Explanation:
The RBI publishes the Financial Stability Report.

This question belongs to: Economy GK Economy Set 1

Question #2

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The 'Agriculture Marketing' in India is primarily regulated by:

A. NABARD

B. RBI

C. SEBI

D. State Agricultural Produce Marketing Committee Acts

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Correct Answer: Option D

Explanation:
Agricultural marketing is regulated by State APMC Acts.

This question belongs to: Economy GK Economy Set 1

Question #3

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Which of the following is NOT included in the calculation of GDP at market prices?

A. Private consumption expenditure

B. Net exports

C. Gross investment

D. Intermediate goods

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Correct Answer: Option D

Explanation:
GDP includes only final goods and services to avoid double counting. Intermediate goods are not included in GDP calculation.

This question belongs to: Economy GK Economy Set 1

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