Q. 23

In an econo

Answer :

Given that

MPC= 2/3=0.67

Change in investment (∆I) = Rs. 300 Cr.

We know that,

k( multiplier) = 1/ (1-MPC) = 1/ (1-0.67) = 3.03

k = ∆Y ∕ ∆I

0.03 = ∆Y ∕ 300

∆Y = Rs. 909 Cr.

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