The marginal propensity to consume = 0.8The change in the initial investment = Rs 1000Multiplier K = 1/1-MPC1/1-0.85Multiplier K = change in income/ change in investment5 = change in income/1000Change in income = 1000*5 = Rs 5000

Q. 175.0( 1 Vote )

Calculate the cha

Class 12th Economics - Board Papers

Answer :

The marginal propensity to consume = 0.8

The change in the initial investment = Rs 1000

Multiplier K = 1/1-MPC

1/1-0.8

Multiplier K = change in income/ change in investment

5 = change in income/1000

Change in income = 1000*5 = Rs 5000

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