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If MPC = 0.9, then value of multiplier will be :
- a)6
- b)9
- c)10
- d)12
Correct answer is option 'C'. Can you explain this answer?
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If MPC = 0.9, then value of multiplier will be :a)6b)9c)10d)12Correct ...
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If MPC = 0.9, then value of multiplier will be :a)6b)9c)10d)12Correct ...
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If MPC = 0.9, then value of multiplier will be :a)6b)9c)10d)12Correct ...
Explanation:
Multiplier:
The multiplier is a measure of the change in income resulting from a change in autonomous expenditure. It shows how much the national income will change in response to a change in injections into the circular flow of income.
Formula:
The formula to calculate the multiplier is given as:
Multiplier = 1 / (1 - MPC)
Given:
MPC = 0.9
Calculating the multiplier:
Using the formula:
Multiplier = 1 / (1 - 0.9)
Multiplier = 1 / 0.1
Multiplier = 10
Therefore, the value of the multiplier when MPC is 0.9 is 10.
Multiplier:
The multiplier is a measure of the change in income resulting from a change in autonomous expenditure. It shows how much the national income will change in response to a change in injections into the circular flow of income.
Formula:
The formula to calculate the multiplier is given as:
Multiplier = 1 / (1 - MPC)
Given:
MPC = 0.9
Calculating the multiplier:
Using the formula:
Multiplier = 1 / (1 - 0.9)
Multiplier = 1 / 0.1
Multiplier = 10
Therefore, the value of the multiplier when MPC is 0.9 is 10.
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If MPC = 0.9, then value of multiplier will be :a)6b)9c)10d)12Correct answer is option 'C'. Can you explain this answer?
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If MPC = 0.9, then value of multiplier will be :a)6b)9c)10d)12Correct answer is option 'C'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about If MPC = 0.9, then value of multiplier will be :a)6b)9c)10d)12Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If MPC = 0.9, then value of multiplier will be :a)6b)9c)10d)12Correct answer is option 'C'. Can you explain this answer?.
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