Mathematics · Expenditure Multiplier
When MPS = 0.25 and the initial increase in autonomous spending is Rs. 100, what are the expenditure multiplier and the resultant increase in GDP, respectively?
- 12.5 and Rs. 250
- 25 and Rs. 500
- 33 and Rs. 300
- 44 and Rs. 400✓
Correct answer
4 and Rs. 400
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