Which of the following must be true to have a closed econ...
Which of the following must be true to have a closed economy with no government, and yet the value of the investmet multiplier still increase?
Marginal propensity to save has fallen
Actual investment had fallen
Average propensity to invest has fallen
Actual saving has fallen
Correct answer is A
Investment multiplier (K) is a function of two factors; The MPS and MPC. If MPC is high, K will also be high but if MPC is low, K will also be low. on the other hand, If MPS is high, K will be low and if MPS is low, K will be high ( since there is an inverse relationship between MPS and K).
The formular used by the Expenditure approach to calculate National income is ...
The two major types of international trade are Bilateral trade and? ...
Production takes place when ...
The central bank controls commercial banks through all the following measures except ...
The following are problems of development planning in Nigeria EXCEPT ...
The International Monetary Fund (IMF) was set up mainly to ...
Indigenization policy is a measure aimed at ...
A persistent rise in the prices of inputs will lead to ...
Governments in West African countries engage in running several enterprises because? ...
The average revenue curve of a firm in a perfect market is the same as the ...