Total increase in national income
In an economy the MPC is 0.75. Investment expenses in the economy raise by Rs.75 crore. Compute total increase in national income.
Expert
K = DY/DI = 1/1-MPCDY = DIx1/1-MPC= 75x1/1-0.75= 300 Crore
Distinguish among devaluation and depreciation of domestic currency
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