It is planned to make a new investment of Rs. 1000 crores in a economy. How much will be the increase in National Income if MPS is 0.4?

Kapil
Latest Answer: 1 week ago
In: Commerce

It is planned to make a new investment of Rs. 1000 crores in a economy. How much will be the increase in National Income if MPS is 0.4?

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1 Answers

Answered By Nikita Chetry
Answer: 1 week ago

When new investment enters the economy, it triggers a multiplier effect, causing a larger increase in National Income than the initial amount invested.Calculation: Investment Multiplier (k) = 1 ÷ M... Read More

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