In an economy MPC is 0.75. If investment is increased by ₹500 crore, calculate the total increase in income

CA Foundation · Business Economics · MTP · September 2026
In an economy MPC is 0.75. If investment is increased by ₹500 crore, calculate the total increase in income
(A) A. ₹1500 cr
(B) B. ₹200 cr
(C) C. ₹2000 cr
(D) D. ₹5000 cr.

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. ₹2000 cr

Topics: Determination of National Income

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