Question

as a result of increase in investment by 60 crore N. I rises by rs 240 crore
calculate marginal propensity to consume​

Answer 1

Answer:

o.25

Explanation:

Increase in Investment is Rs. 60 crores and increase in income is Rs. 240 crores, 

Multiplier(k) => Change in income / change in investment = 1/ MPS 

                     => 240/60  = 1/MPS

                     =>4  =  1/ MPS

                     => MPS = 1/ 4 = 0.25

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