Question

If \[MPI=0.15\], how much of every additional ₹1 of income goes into investment?

Options

• ₹0.85

• ₹0.15

• ₹15

• ₹1.15

Answer 1

An MPI of \[0.15\] means investment rises by ₹0.15 for each additional ₹1 of income. It shows the marginal response of investment to income.