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Determination Of Income And Employment

Question

In an economy investment increases by र 10 crores. As a result income increases by र 50 crores. What is the value of multiplier?

Solution

straight K space equals space fraction numerator increment straight Y space left parenthesis Change space in space income right parenthesis over denominator increment straight Y space left parenthesis Change space in space investment right parenthesis end fraction space equals space 50 over 10 space equals space 5