NextQ63

Read the following statements carefully : Statement 1 : A consumption function describes the relationship between consumption and savings. Statement 2 : Consumption function consists of two components — autonomous consumption and induced consumption. In the light of the given statements, choose the correct alternative from the following :

Concept of Investment MultiplierStudy Simplify SpecialPYQ1MCQ
Question 62

Suppose for a hypothetical economy : C = 100 + 0.75Y (where C = Consumption and Y = Income) I_0 = 400 (I_0 = Autonomous Investment) Value of Investment Multiplier (K) would be __________. (Choose the correct alternative to fill in the blank)

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