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How much additional income will be …

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How much additional income will be generated in an economy with an additional investment of ₹100 crores and when half of increase in income is spent on consumption?

    • Posted by Pritesh Agrawal 7 years, 10 months ago

    CBSE > Class 12 > Economics
    • 1 answers

    Dhairya Gupta 7 years, 10 months ago

    If half of the increase in income is spent on consumption this means that MPC =0.5 Value of multiplier=1/1-MPc Then apply change in income=value of multiplier X change in investment

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