What is the formula of Super Multiplier?
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UGC-NET 2026 Question 56: Keynesian cross and the multiplier
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What is the formula of Super Multiplier? (A) K = 1/(1-MPC-MPI) (B) K = 1/(1-MPC+MPI) (C) K = 1/(1-MPC-MEC) (D) K = 1/(1-MPC+MEC)
Keynesian cross and the multiplier has come up 167 times in 7 exams since 2006.
What this question tests
This question is on Multiplier extensions: induced investment and class saving, part of Keynesian cross and the multiplier in Macroeconomics.
The multiplier when investment responds to income or when groups have different saving behaviour.
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