National Income and Related Aggregates-Gross Investment (CBSE Class-12 Economics): Questions 1 - 1 of 1

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Question number: 1

» National Income and Related Aggregates » Gross Investment

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As a result of increase in investment national income rises by Rs. 600 crores. If marginal propensity to consume is 0.75, calculate the increase in investment.


Here, increase in investment national income ( Equation ) = Rs. 600 Crores

Marginal propensity to consume (MPC) = 0.75

K= Equation = Equation = Equation = 4

K= Equation so, Equation = Equation = Equation = 150

So increase in investment = Rs 150 crore.

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