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## What is the minimum value of investment?

A minimum investment is the **smallest dollar or share quantity that an investor can purchase** when investing in a specific security, fund, or opportunity. A hedge fund, for example, may require that their clients deposit at least $100,000 with the firm. Or, a mutual fund may require at least $3,000 to be invested.

## How do you calculate the investment multiplier?

The **ratio of ΔY to ΔI** is called the investment multiplier. It can be derived, as follows, from the equilibrium condition (Y = C + I + G) together with the consumption equation (C = a + bY).

## What is the minimum and maximum value of K in economics?

Value of K depends upon value of MPC or MPS. We know size of MPC cannot be negative, it can be, at the most, **zero (minimum value) and maximum value can be 1**.

## What is the highest and lowest value of investment multiplier?

Answer: The **maximum value of multiplier is infinity when the value of MPC is 1**. It implies that the economy is consuming the entire additional income. The minimum value of multiplier is one when the value of MPC = 0.

## When MPC is 1 value of multiplier?

We know, **k=1/1-MPC** if MPC=1 , then k will be infinity. option 4 is the correct answer.

## When MPC is 0.6 What is the multiplier?

If MPC is 0.6 the investment multiplier will be **2.5**.

## What can be the maximum value of MPS?

Since MPS is measured as ratio of change in savings to change in income, its value lies **between 0 and 1**. … Mathematically, in a closed economy, MPS + MPC = 1, since an increase in one unit of income will be either consumed or saved.

## What do you mean by investment explain with example?

An investment is **an asset or item acquired with the goal of generating income or appreciation**. … For example, an investor may purchase a monetary asset now with the idea that the asset will provide income in the future or will later be sold at a higher price for a profit.

## What is investment multiplier Class 12?

In simple words, investment multiplier refers to **the increase in the aggregate income of the economy as a result of an increase in the investments done by the government in the form of new projects**.

## When MPC is 0.9 What is the multiplier?

The correct answer is B. **10**.

Investment Multiplier **shares a direct positive relationship with marginal propensity to consume**. That is, higher the value of MPC, higher will be the value of investment multiplier and vive-versa. That is Higher the proportion of increased income spend on consumption, higher will be value of investment multiplier.