The software and related services sector has a multiplier effect on the Indian economy with every one-rupee input spent by theʺ information technology sectorʺ producing an increase in real GDP by two rupees.
According to the story, if__________ in the software and related services sector increases by $15 billion, real GDP will increase by__________ .

Question

Quizplus · Accepted Answer

The story states that every one-rupee input spent by the "information technology sector" produces an increase in real GDP by two rupees. Therefore, if investment in the software and related services sector increases by $15 billion, real GDP will increase by $30 billion (two times the amount of investment). Option D is the only option that matches this scenario.

The Software and Related Services Sector Has a Multiplier Effect