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

Essay Question▾

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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.

Explanation

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

Marginal propensity to consume (MPC) = 0.75

K= 11MPC = 110.75 = 10.25 = 4

K= YI so, I = YK… (13 more words) …

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