National Income and Related Aggregates-Gross Investment (CBSE (Central Board of Secondary Education- Board Exam) Class-12 Economics): Questions 1 - 1 of 1

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Question number: 1

» National Income and Related Aggregates » Gross Investment

Essay Question▾

Describe in Detail

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.

Explanation

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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