Macro

Income & Employment

Easy

What would be the value of investment multiplier if MPC = MPS ?

✅ Correct Option: 3

Since $MPC + MPS = 1$ and $MPC = MPS$ , each equals $0.5$ .

Investment Multiplier $= \frac{1}{MPS} = \frac{1}{0.5} = 2$ .

2024: 16 May

Rearrange the given statements in proper chronological sequence in an ascending order (earliest to latest):

2026: 31 May Shift 1

Calculate the value of the multiplier from the given consumption function C = 100 + 0.8Y.

2025: 28 May Shift 1

Match List-I with List-II

List-I	List-II
A. MPS	I. Saving Per unit of Income.
B. MPC	II. Consumption per unit of Income
C. APS	III. Change in consumption per unit change in income.
D. APC	IV. Change in savings per unit change in income.

Choose the correct answer from the options given below:

2023: 20 June Shift 1

The sum total of MPC and MPS is always equal to:

2025: 30 May Shift 2

What is the equilibrium output when autonomous investment increases from 10 to 20 at a given C = 40 + 0.8Y?

2022: 30 Aug Shift 2

Match List - I with List - II.

List - I	List - II
(A) MPC (Marginal Propensity to Consume)	(I) $\frac{\Delta Y}{\Delta I}$
(B) MPS (Marginal Propensity to Save)	(II) $\frac{\Delta C}{\Delta Y}$
(C) K (Multiplier)	(III) C + I
(D) AD (Aggregate Demand)	(IV) $\frac{\Delta S}{\Delta Y}$

Choose the correct answer from the options given below :

Solution