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Questions › JNU › JNU SIS 2012 › Q25
4 marks, −1Macroeconomics › Keynesian cross and the multiplier › The open-economy multiplierEasyabout 1 min

JNU SIS 2012 Question 25: Keynesian cross and the multiplier

If the marginal propensity to save is 0⋅150\cdot 150⋅15 and the marginal propensity to import is 0⋅050\cdot 050⋅05, then the multiplier effect on GDP is

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If the marginal propensity to save is 0· 15 and the marginal propensity to import is 0· 05, then the multiplier effect on GDP is (A) 6· 67 (B) 5· 00 (C) 4· 31 (D) None of the above

Also written as: If the marginal propensity to save is 0* 15 and the marginal propensity to import is 0* 05, then the multiplier effect on GDP is

Keynesian cross and the multiplier has come up 167 times in 7 exams since 2006.

What this question tests

This question is on The open-economy multiplier, part of Keynesian cross and the multiplier in Macroeconomics.

How imports leak spending abroad and shrink the multiplier.

TestStop has 16 past-paper questions on this subtopic; the nearest in year are below.

  • GATE 2021 · Q12In a two country model, an increase in foreign country's national income generally leads to:
Practise Keynesian cross and the multiplierMore on The open-economy multiplier

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