Question:
If the value of the investment multiplier is 5, and the increased income is ₹800 crore, find the change in investment.
If the value of the investment multiplier is 5, and the increased income is ₹800 crore, find the change in investment.
Updated On: Oct 29, 2024
- ₹4000 crore
- ₹120 crore
- ₹400 crore
- ₹160 crore
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The Correct Option is C
Solution and Explanation
The investment multiplier \(K=\frac{ΔI}{ΔY}\), so ΔI=5800=400 crore.
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