In an economy investment expenditure is increased by ₹300 crores and marginal propensity to consume is 0.6. Calculate the total increase in income.
CA Foundation · Business Economics · PYQS · January 2025
In an economy investment expenditure is increased by ₹300 crores and marginal propensity to consume is 0.6. Calculate the total increase in income.
Suggested Answer and Working Notes:
Correct Answer: Option (D)
D. ₹750 crores
Topics: Determination of National Income
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