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 5 years, 8 months ago

CBSE > Class 12 > Economics

10 answers

Harshita Jain 5 years, 8 months ago

Correct answer is 0.20

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Abhishek Singh 5 years, 8 months ago

0.25

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Aleena Mariam John 5 years, 8 months ago

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

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Himanshi Kumari 5 years, 8 months ago

Yes ?‌‌‌ .....

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Harshita Jain 5 years, 8 months ago

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

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Himanshi Kumari 5 years, 8 months ago

How ???

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Harshita Jain 5 years, 8 months ago

But guys!!! Actually answer is 0.20?

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Himanshi Kumari 5 years, 8 months 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 . 5 years, 8 months ago

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

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Shubham Gupta 5 years, 8 months ago

0.25

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