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



Multiplier K = change in income/ change in investment

5 = change in income/1000

Change in income = 1000*5 = Rs 5000

Rate this question :

How useful is this solution?
We strive to provide quality solutions. Please rate us to serve you better.
Try our Mini CourseMaster Important Topics in 7 DaysLearn from IITians, NITians, Doctors & Academic Experts
Dedicated counsellor for each student
24X7 Doubt Resolution
Daily Report Card
Detailed Performance Evaluation
view all courses

GEconomics - Board Papers

IEconomics - Board Papers

If nominal incomeEconomics - Board Papers

An economy is in Economics - Board Papers

Sale of petEconomics - Board Papers

FEconomics - Board Papers

An economy Economics - Board Papers