Q17 of 39 Page 1

Estimate the change in initial investment if Marginal Propensity to Save (MPS) is 0 �10 and change in final income is < 15,000 crores.

We know,


K = 1/MPS = 1/0.1 = 10.


Now, k = change in income/change in investment


Therefore, change in investment = change in income/k


15000 crores/10


< 1500 crores.


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