An increase in investment in a …
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Posted by Manav Sharma 5 years, 4 months ago
- 2 answers
Gaurav Seth 5 years, 4 months ago
Increase in National Income is Rs. 200 crores and MPC = 0.75
<div style="border:0px; margin:0px; padding:0px">Multiplier(k) => 200 / change in investment
= 1/ (1- MPC)
=> 200 / change in investment = 1/0.25
=> 200 / change in investment = 4
=> change in investment = 200 / 4 = 50 crores.
</div>
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Khushi Varshney 5 years, 4 months ago
0Thank You