1.

there is an increasae in investment of Rs. 100 crore in an economy , mnarginal propensity to cosume is 1. what can you say about increase in income ?

Answer» `K=(1)/(1-MPC)=(1)/(1-1)=(1)/(0)=oo"(infinite)"`
`oo =(Delta Y) /( Delta I) `
`Delta Y= oo xxDelta I = 100oo`
total increase in income is 100 or infinite .


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