Q. On the basis of the Keynesian model of output determination, a multiplier of 3 implies that (Solved)
1. An increase in consumption by `3 will result in an increase in investment by Re. 1
2. An increase in investment by Re. 1 will result in an increase in consumption by `3
3. An increase in investment by Re. 1 will result in an increase in consumption by `2
4. An increase in investment by Re. 1 will result in an increase in consumption by Re. 1
- c. An increase in investment by Re. 1 will result in an increase in consumption by `2