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Find the value of additional investment made by the government when MPC = 0.5 and the increase in income (ΔY) = ₹ 1000. - Economics

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प्रश्न

Find the value of additional investment made by the government when MPC = 0.5 and the increase in income (ΔY) = ₹ 1000.

संख्यात्मक
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उत्तर

Given: MPC = 0.5, ΔY = ₹ 1,000

MPC = `(ΔC)/(ΔY)`

`0.5 =(ΔC)/(1,000)`

ΔC = 0.5 × 1000

ΔC = 500

K = `(1)/(1 - "MPC")`

= `(1)/(1 - 0.5)`

= `1/0.5`

= 2

ΔI = `(ΔY)/K`

= `(1000)/(2)`

= 500

The value of additional investment made by the government is ₹ 500.

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अध्याय 12: Theory of Income and Employment - NUMERICAL QUESTIONS [पृष्ठ २३३]

APPEARS IN

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