If both the tax revenue and expenditure of the government increases by 100 rupees and marginal consumption trend is 4/5 then the national income will increase - a) Rs 100 b) 400 rupees c) 500 rupees d) 125 rupees.
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Answer:
100 rupees
Explanation:
because if it would increase by 100 rupees then 4/5means400/500by multiplying it into increased tax and by subtracting 500into 400 we will get answer 100,so 100 is the write answer
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