The value of the investment multiplier is equal to: MCQ with Answer and Explanation

Question

Share Report Error

The value of the investment multiplier is equal to:

A. MPC divided by MPS

B. 1 divided by MPC

C. 1 divided by MPS

D. MPS divided by MPC

Answer: Option C

Solution (By JKSSB Mock Tests)

The investment multiplier is 1/MPS, or 1/(1 - MPC).

This question belongs to: Economy GK Economy Set 1

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Economy Set 1 Questions

Question #1

Which of the following is a stock variable?

A. Government expenditure

B. Capital stock

C. National income

D. Investment expenditure

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option B

Explanation:
Capital stock is measured at a point of time and is therefore a stock variable.

This question belongs to: Economy GK Economy Set 1

Question #2

The Rostow stages of growth model lists which of the following as the first stage?

A. Age of high mass consumption

B. Traditional society

C. Take-off

D. Drive to maturity

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option B

Explanation:
Rostow's first stage is traditional society, followed by preconditions for take-off, take-off, etc.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'unbalanced growth theory' was proposed by:

A. Paul Rosenstein-Rodan

B. John Maynard Keynes

C. Albert Hirschman

D. Arthur Lewis

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option C

Explanation:
Albert Hirschman proposed the theory of unbalanced growth.

This question belongs to: Economy GK Economy Set 1

Explore All Economy Set 1 MCQs