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 1.1/4 2.4 3.40 4.10​

Answer 1

Answer:

option 2nd is correct Investment Multiplier =4

Explanation:

$k = \frac{chang \: in \: y }{change \: in \: i}$

now change in I = 10

And change in Y = 40

then K = 40÷10

K = 4

Answer 2

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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