Question

In an economy, the actual level of income is rs 800 crores whereas the full employment level of income is

Rs 1200 crores. The MPC is 0.80. Calculate the increase in investment to achieve the full employment level of

income​

Answer 1

Answer:

Answer :

Increase in investment required = Rs. Crores

Solution :

Given : MPS

(as one - fourth or

of additional income is saved) <br> Multiplier (k)

<br> We also know : k

<br> Given : Change in Income

crores <br> i.e., 4

<br> Hence ,Change in Investment required

crores

may this method helps you

Answered by Gaurang Bajpai

(Brainly user)