Question

15) A Rs. 200 crore increase in investment leads to a rise in national income by rs. 1000
crores. Find out marginal propensity to consumer.​

Answer 1

Answer :

Marginal Propensity to Consume (MPC) `=0.80`

Solution :

Multiplier (k)`=("Change in Income"(DeltaY))/("Change in Investment"(Delta))=(1,000)/(200)=5` <br> We know, Multiplier (k)`=(1)/(1-MPC)` <br> 5`=(1)/(1-MPC)` <br> Hence ,MPC `=1-0.20=0.80`

PLS ,MARK BRAINLIEST