If the value of the investment multiplier is 5, and the incr... | Economics | SolveeIt | Solveeit

Today, August 18

Question

If the value of the investment multiplier is 5, and the increased income is ₹800 crore, find the change in investment.

A

₹4000 crore

B

₹120 crore

C

₹400 crore

D

₹160 crore

Answer

₹400 crore

Explanation

Solution

The investment multiplier $K=\frac{ΔI}{ΔY}$ , so ΔI=5800=400 crore.