IAI November 2014 question27

Discussion in 'CT7' started by Neha Maheshwari, Apr 29, 2016.

  1. Following is the split of utilization of INR 100 earned in India:
    INR 25 is invested
    Personal Tax of INR 10
    Import of INR 15
    Domestic consumption of INR 50
    What is the value of GDP multiplier:
    A. 1.67
    B. 10.00
    C. 6.66
    D. 2.00
     
  2. Sunit_K

    Sunit_K Member

    D. 2.00

    The mpcd can be calculated as 0.5 from the split.
    Thus giving k=2.
     

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