NextQ43

If the Marginal Propensity to Save (MPS) is 0.5, what will be the value of investment multiplier ? (Choose the correct alternative)

Equilibrium Condition and ApproachesStudy Simplify SpecialPYQ1MCQ
Question 42

Read the following statements carefully : Statement 1 : Investment is defined as addition to the physical capital and changes in the inventory. Statement 2 : At equilibrium level of income, ex-post investments and ex-post savings are always equal. In light of the given statements, choose the correct alternative from the following :

42/162