New NABARD Grade A 2024 Results out!! Register here for a free live workshop on Feb 26, 2025 at 5 PM. Only on Zoom.

    Question

    For which of the following consumption

    functions, the value of income multiplier, k=4?
    A C = 100 + 0.5Y Correct Answer Incorrect Answer
    B C = 100 + 0.8Y Correct Answer Incorrect Answer
    C C = 50 + 0.75Y Correct Answer Incorrect Answer
    D C = 100 + 0.9Y Correct Answer Incorrect Answer

    Solution

    Multiplier = 1/(1-MPC) = 1/(1-0.75) = 4

    Practice Next