Re: ISI Sample Paper 2013 ME-II Doubts

Posted by srawan on Apr 30, 2013; 4:10am
URL: http://discussion-forum.276.s1.nabble.com/ISI-Sample-Paper-2013-ME-II-Doubts-tp7580214p7580233.html

7 .  i think ans-true
because if investment increases from i to 2i ,then extra investment is i ,due to this i demand increases by i ,but this all extra investment i is imported so this i is now income of a foreigner implies no multiplier effect and also  this import i would reduce demand of domestic goods by i , so overall net demand change is 0  therefor multiplier is 0