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An increase in investment by rupees …

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An increase in investment by rupees 5000 crores leads to increase in national income which is four times more than the increase in investment. calculate MPS

    • Posted by Harshita Jain 6 years ago

    CBSE > Class 12 > Economics
    • 10 answers

    Harshita Jain 6 years ago

    Correct answer is 0.20

    0Thank You

    Abhishek Singh 6 years ago

    0.25

    0Thank You

    Aleena Mariam John 6 years ago

    K=4 k=1/MPS 4=1/MPS 4MPS=1 MPS=1/4 MPS=0. 25 I think it is the correct answer

    0Thank You

    Himanshi Kumari 6 years ago

    Yes ?‌‌‌ .....

    0Thank You

    Harshita Jain 6 years ago

    Ok !! I got it if we read question properly then we will see that ∆Y=4∆I+5000

    0Thank You

    Himanshi Kumari 6 years ago

    How ???

    0Thank You

    Harshita Jain 6 years ago

    But guys!!! Actually answer is 0.20?

    0Thank You

    Himanshi Kumari 6 years ago

    The value of MPS = 0.25 as k =4 (given in the ques ) and ∆I =5000 Then , ∆Y=20,000 ...... Then k =1/MPS , MPS=1/4 = 0.25 ..........??

    1Thank You

    Shalini . 6 years ago

    K=4. So, by formula k=1/MPS. Now, equating. 4=1/MPS. => MPS= 1/4 =0.25

    1Thank You

    Shubham Gupta 6 years ago

    0.25

    1Thank You

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