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

Question
The value of the investment multiplier is equal to:
A. MPC divided by MPS
B. 1 divided by MPC
C. MPS divided by MPC
D. 1 divided by MPS
Answer: Option D
Solution (By JKSSB Mock Tests)
The investment multiplier is 1/MPS, or 1/(1 - MPC).
This question belongs to: Economy GK Economy Set 1
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Practice More Economy Set 1 Questions

Question #1
Which of the following is a characteristic of the 'Risk-Sharing' benefits of international financial integration?
A. Risk-sharing is irrelevant for welfare
B. Integration always increases consumption volatility
C. Countries can smooth consumption in the face of idiosyncratic shocks by trading claims on future output
D. Only closed economies can smooth consumption
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Correct Answer: Option C

Explanation:
International risk-sharing allows countries to diversify away country-specific income shocks by holding foreign assets, thereby reducing the volatility of national consumption relative to national output.
This question belongs to: Economy GK Economy Set 1
Question #2
The 'Public Accounts Committee' is chaired by a member of:
A. NITI Aayog
B. opposition party
C. RBI
D. ruling party
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Correct Answer: Option B

Explanation:
The PAC is traditionally chaired by a member of the opposition.
This question belongs to: Economy GK Economy Set 1
Question #3
The 'Goods and Services Tax' annual return is filed in:
A. GSTR-9
B. GSTR-1
C. GSTR-4
D. GSTR-3B
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Correct Answer: Option A

Explanation:
GSTR-9 is the annual return.
This question belongs to: Economy GK Economy Set 1
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