The multiplier effect explains how an initial increase in investment leads to a greater increase in:
Options
ASavings
BTaxes
CNational Income
DImports
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Determination of National IncomePYQ - July 2021 (Inter)Question 107 of 20
All Questions Correct Answer
✅ Option c — National Income
All Options:
- ASavings
- BTaxes
- CNational Income
- DImports
About This Chapter: National Income
Paper
Paper 4: Business Economics
Weightage
15%
Key Topics
Aggregates, Measurement, Keynesian Theory
A crucial chapter covering national income aggregates like GDP, GNP, NDP, NNP, and the methods of measuring national income (Income, Expenditure, and Output methods). It also introduces Keynesian Theory including the concepts of Aggregate Demand, Consumption Function, and the Multiplier.
View Official ICAI SyllabusExam Strategy Tip
Practice numerical questions on GDP/GNP calculations and the Multiplier. These are guaranteed marks in every exam. Also understand the circular flow of income clearly.
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