Q. 175.0( 1 Vote )

Calculate the cha

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


5


Multiplier K = change in income/ change in investment


5 = change in income/1000


Change in income = 1000*5 = Rs 5000


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