Question

How much additional income will be generated in an economy with an additional investment of 100
crores and when half of increase in income is spent on consumption?​

Answer 1

Explanation:

If half of the increase in income is spend on consumption then MPC = 0.5 

Multiplier(k) => Change in income / change ininvestment = 1/ (1-MPC)

                     => change in income/ 100 = 1/ 0.5 

                     => change in income/ 100 = 2

                     => change in income = 2 ×100 = 200 crores. 

Answer 2

Anamika kya tum macroeconomics

chapter - lncome determination and multiplier

question no 13 of unsolved practical.

can you give answer of this question.