ЁЯУв Too many exams? DonтАЩt know which one suits you best? Book Your Free Expert ЁЯСЙ call Now!
  • google app store apple app store
    • тЬЦ

      Question

      Which of the following Statements about Multiplier

      Effect is/are True? I. When the government spends a rupee, overall income rises by a multiple (more than a rupee) II. Government spending will also encourage private investment and consumer spending. III. In multiplier effect, the Government bears huge losses on tax front.
      A Only I Correct Answer Incorrect Answer
      B Only III Correct Answer Incorrect Answer
      C I & II Correct Answer Incorrect Answer
      D II & III Correct Answer Incorrect Answer
      E All of the above Correct Answer Incorrect Answer

      Solution

      When the government spends a rupee, overall income rises by a multiple (more than a rupee). Government spending will also encourage private investment and consumer spending. This is referred to as the multiplier effect.

      Practice Next
      More Basic concepts of Economics Questions

      Relevant for Exams:

      ask-question