New RBI Grade B 2025 Notification will come Soon! Enroll Here

    Question

    The value of expenditure multiplier when

    marginal propensity to save is 0.4 is 
    A 2.5 Correct Answer Incorrect Answer
    B 9.2 Correct Answer Incorrect Answer
    C 3.5 Correct Answer Incorrect Answer
    D 4 Correct Answer Incorrect Answer
    E 5 Correct Answer Incorrect Answer

    Solution

    Multiplier = 1/MPS = 1/0.4 = 2.5

    Practice Next