If an investment of Rs 10 crore results in an increase in income by Rs 50 crore then the multiplier ...........

If an investment of Rs. 10 crore results in an increase in income by Rs 50 crore, then the multiplier will be:

None of these

- The multiplier effect measures the change in income resulting from an investment.

- It is calculated as the change in income divided by the change in investment.

- Here, an investment of Rs. 10 crore leads to an income increase of Rs. 50 crore.

- Multiplier = Change in Income (Rs. 50 crore) / Change in Investment (Rs. 10 crore) = 50 / 10 = 5.

- Option 1: 5 is the correct answer.

- Option 2: 4 is incorrect as it does not match the calculated multiplier.

- Option 3: 2 is incorrect for the same reason.

- Option 4: None of these is incorrect since option 1 is correct.

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