Question

Explain the working of investment multiplier with the help of a numerical example.

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Answer 1

Answer:

Since MPC = 0.8, the income earners speed Rs 800 on consumption. This raises the income of the suppliers of consumption goods by Rs 800. In this way national income goes on national income goes on increasing round after round. .

Explanation:

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Answer 2

Answer:

Explain the working of investment multiplier with the help of a numerical example. Since MPC = 0.8, the income earners speed Rs 800 on consumption. This raises the income of the suppliers of consumption goods by Rs 800. ... In this way national income goes on national income goes on increasing round after round.