1.

in an economy investment is increased by Rs. 2,000 crore ,Calculate the change in total income if MPS is 0.25.

Answer» `DeltaI=2,000 " "therefore MPS=0.25=(1)/(4)`
`K=(1)/(MPS)=(1)/(1//4)=4`
`K=(DeltaY)/(DeltaI) or 4=(DeltaY)/(2000)`
`Delta Y= 4xx2,000=8,000`crore


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