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As a result of increase in investment by rs 125 crores national income increases by rs 500 crores calculate MPC?
Wiki User
∙ 14y ago
MPC=0.75
As 500/125=4
Therefore MPS=0.25, as 1/0.25= 4
MPC= 1-MPS
Therefore 1-0.25
=0.75
Wiki User
∙ 14y ago
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