1.

in an economy , actual level of income IS Rs. 500 crore whereas the full employment level of income is Rs. 800 crore . The MPC is 0.75 Calculate the increase in investment required to achieve full employment level of income .

Answer» `K=(1)/(1-MPC)=(1)/(1-0.75)=(1)/(0.25)=(1)/(1//4)=4`
increase in income required =800-500
=300 crore
increase in investment required = 300`div` 4
`=75 `crore


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