Q. 185.0( 1 Vote )

Estimate the chan

Answer :

Marginal Propensity to Consume MPC = 0.75


Therefore, k = 1/(1-MPC) = 1/(1-0.75) = 1/0.25 = 4.


Change in final income = k x Change in investment = 4 x 2000 crores = 8000 crores.


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