In an economy, an increase in investment leads to an increase in national income which is three times than the increase in investment. Calculate marginal propensity to consume. (2024)

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Since an increase in national income (Y) is three times more than the increase in investment, it means the total increase in (Y) is four times,i.e., Multiplier (K) is 4.
K= 1/1- MPC
4 = 1/1-MPC
4 - 4MPC = 1
3 = 4MPC
MPC = 0.75

An increase in investment by Rs. 400 crores leads to increase in National Income by Rs. 1,600 crores. Calculate marginal propensity to consume.

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An increase in investment in a country leads to increase in national income by Rs. 200 crores. If marginal propensity to consume is 0.75, what is the increase in investment? Calculate.

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In an economy the marginal propensity to consume is 0.75. Investment expenditure in the economy increases by Rs. 75 crore. Calculate the total increase in national income.

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In an economy, an increase in investment leads to an increase in national income which is three times than the increase in investment. Calculate marginal propensity to consume. (2024)

Since an increase in national income (Y) is three times more than the increase in investment, it means the total increase in (Y) is four times,i.e., Multiplier (K) is 4.K= 1/1- MPC4 = 1/1-MPC4 - 4MPC = 13 = 4MPCMPC = 0.75

Since an increase in national income (Y) is three times more than the increase in investment, it means the total increase in (Y) is four times,i.e., Multiplier (K) is 4.
K= 1/1- MPC
4 = 1/1-MPC
4 - 4MPC = 1
3 = 4MPC
MPC = 0.75