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In an economy, level of income is ₹ 200...

In an economy, level of income is ₹ 2000 crore and MPC= 0.75. Calculate total income if investment is increased by ₹ 200 crore.

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`" "K= (1)/(1-MPC)= (100)/(25)= 4`
`" "K=4`
`" "K= (Delta Y)/(Delta I) " "or " "4 = (Delta Y )/(200)`
`" "K= (DeltY )/(Delta I)" "or " "4= (Delta y )/(200)`
`" "Delta Y= ₹ 800` crore
`therefore " "` Total income = `Y+Delta Y= 2000+800= ₹ 2800` crores
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