If MPC is 0.8, the value of the investment multiplier is:
Options
A4
B5
C8
D2
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Determination of National IncomePYQ - May 2022 (Inter)Question 109 of 20
All Questions Correct Answer
✅ Option b — 5
All Options:
- A4
- B5
- C8
- D2
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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