Question 51
MediumOriginal questionInvestment rises by ₹100 crore and the MPC is 0.5. After the first two rounds, income has risen by
Show the answer and explanation
CorrectNot quiteAnswer B
Correct answer: B
Explanation
Round 1: 100. Round 2: 0.5 × 100 = 50.
Total so far = ₹150 crore, on the way to 100 × 2 = ₹200 crore.
Worth noting
₹175 crore adds a third round of 25, one more than asked.
- Concept
- Rounds with a low MPC
- Typical timeTypical
- 70 s
- Your timeYours
- —
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