invesstment multiplier
what can be the minimum value of investment multiplier?
What relationship does the MPC bear to the size of the multiplier? The MPS? What will the multiplier be when the MPS is 0, .4, .6, and 1
Let suppose NDPFC is Rs. 1,000 crores, and NFA is Rs. (--) 5crores, then what will be national income (NNPFC)? Answer: NNPFC = NDPFC+NFA = 1000 + (-5) = Rs. 995 crores.
is studying economic worth your time and effort
Define the term Supply curve.
Why the value of MPC is not greater than 1? Answer: This is because change in consumption can never be more than change in income.
Macro Economics: Macro economics studies the economy as an entire.
what are the four supply factors of economic growth
Determine the value of MPC whenever MPS is zero? Answer: Whenever MPS = 0, MPC = 1 – 0 = 1.
Why is tax considered as revenue receipt? Answer: Since tax neither makes a liability for government nor decreases assets of the government.
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