Question : If the value of Investment Multiplier is 5 and the increased income is 800 crore in an economy, the find the value of change in the investment in the economy.
Option 1: 4000 crore
Option 2: 120 crore
Option 3: 400 crore
Option 4: 160 crore
Answer (1)
18th Jan, 2024
Correct Answer: 160 crore
Solution : Multiplier = Change in Income/Change in Investment. Change in investment = Change in income/Mutipliplier = ₹ 800/5 = ₹ 160.
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