Question 32
MediumOriginal questionThe MPC is 0.75 and investment rises by ₹50 crore. Income rises by
Show the answer and explanation
CorrectNot quiteAnswer D
Correct answer: D
Explanation
k = 1 ÷ 0.25 = 4.
ΔY = 4 × 50 = ₹200 crore.
Worth noting
₹150 crore is the rise in consumption, not in income.
- Concept
- Change in income
- Typical timeTypical
- 70 s
- Your timeYours
- —
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