MPC = 0.6
Initial investment = 100 crores
Multiplier (K) = 1/1MPC
= 1/0.4 = 2.5
At equilibrium C+I = C+S
I=S in the economy when the income level is 200 crores. At 200 crores, the level of savings equal the level of investment; both being equal to 80 crores.
Thus, the equilibrium level of income in the economy is 200 crores
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