Question

If as a result of change in investment by Rs.10 crore, Income increases by Rs. 40 crore, then the value of investment multiplier will be :
1/4
4
40
10
plz right ✅ answer ​

Answer 1

Given :  as a result of change in investment by rs.10 crore, income increases by rs.40 crore

To Find : the

r will be

1. 1/4

2. 4

3. 40

4. 10​

Solution:

value of investment multiplier  =  Change in income / Change in investment

Change in income =  rs. 40 crore

Change in investment   =  rs. 10 crore

value of investment multiplier  =    40 crore  /  10 crore

=> value of investment multiplier  = 4

Option 2   - the value of investment multiplier will be 4 is correct

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