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Multiplier(k) => Change in income / 1,00 = 1/ (1-MPC)
=> Change in income / 1,000 = 1/ (1- 0.8)
=> Change in income / 1,000 = 1/ 0.2
=> change in income = 5 (1,000) = 5,000 crores
K= change in income/ change in investment = 5,000 /1,000 = 5 times
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Hey Mate !
Multiplier(k) => Change in income / 1,00 = 1/ (1-MPC)
=> Change in income / 1,000 = 1/ (1- 0.8)
=> Change in income / 1,000 = 1/ 0.2
=> change in income = 5 (1,000) = 5,000 crores
K= change in income/ change in investment = 5,000 /1,000 = 5 times
Hope it helps u !
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