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    5. I f Rs. 10 crores are invested in public works and MPS is 0.25, then the increase in income would be

    Question

    I f Rs. 10 crores are invested in public works and MPS

    is 0.25, then the increase in income would be
    A 10 crores Correct Answer Incorrect Answer
    B 20 crores Correct Answer Incorrect Answer
    C 30 crores Correct Answer Incorrect Answer
    D 40 crores Correct Answer Incorrect Answer
    E 50 crores Correct Answer Incorrect Answer

    Solution

    Multiplier = 1/0.25 = 4 So, increase in income = 4(10) = 40 crores

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