MCQOPTIONS
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MCQOPTIONS
| 1. |
On the basis of the Keynesian model of output determination, a multiplier of 3 implies that |
| A. | An increase in consumption by `3 will result in an increase in investment by Re. 1 |
| B. | An increase in investment by Re. 1 will result in an increase in consumption by `3 |
| C. | An increase in investment by Re. 1 will result in an increase in consumption by `2 |
| D. | An increase in investment by Re. 1 will result in an increase in consumption by Re. 1 |
| Answer» D. An increase in investment by Re. 1 will result in an increase in consumption by Re. 1 | |