In an economy the MPC is 0.75. Investment expenditure in the economy increase by Rs.75 crore. Calculate total increase in national income.
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- In an economy the MPC is 0.75. Investment expenditure in the economy increase by Rs.75 crore. Calculate total increase in national income.
In an economy the MPC is 0.75. Investment expenditure in the economy increase by Rs.75 crore. Calculate total increase in national income.
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Answers
AJAY
K=DY/DI = 1/1-MPC
DY= DIx1/1-MPC
= 75x1/1-0.75
= 300 Crore