The Software and Related Services Sector Has a Multiplier Effect

question 145

Multiple Choice

The software and related services sector has a multiplier effect on the Indian economy with every one-rupee input spent by the" information technology sector" producing an increase in real GDP by two rupees.
Www) ft.com, 2/28/2008
According to the story, if ________ in the software and related services sector increases by $15 billion, real GDP will increase by ________.

• A) investment; $30 billion.
• B) consumption; $30 billion.
• C) consumption; $2 billion.
• D) investment; $2 billion.

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