What is the value of Investment Multiplier when saving function is represented as S = -60 + 0.2Y?

CA Foundation · Business Economics · MTP · September 2024
What is the value of Investment Multiplier when saving function is represented as S = -60 + 0.2Y?
(A) A. 2
(B) B. 5
(C) C. 4
(D) D. 0.2

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. 5

Topics: Determination of National Income

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