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Economics · 2023 · 1 mark
Determination of Income and EmploymentDetermination of Equilibrium Income in the Short Run1 markApplymcq
CBSE 2023 · Region 4 · Set 1 · Q6
(A) If the Marginal Propensity to Save (MPS) is 0·5, what will be the value of investment multiplier? (Choose the correct alternative)
If the Marginal Propensity to Save (MPS) is $\displaystyle 0$·$\displaystyle 5$, what will be the value of investment multiplier ? (Choose the correct alternative)
An increase in National Income occurs by ₹ $\displaystyle 3,000$ crore, as investments increased by ₹ $\displaystyle 1,200$ crore. The value of investment multiplier would be _________.(Choose the correct alternative to fill up the blank)
Official answer
(A) → (B)
(B) → (B)
Marking-scheme solution
Branch (A) : (B) $\displaystyle 2$
OR
Branch (B) : (B) $\displaystyle 2$·$\displaystyle 5$
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CBSE Class 12 Economics past-paper question from the 2023 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.