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    • Question

      The government increases its expenditure by ₹200

      million, and the marginal propensity to consume (MPC) is 0.75. Assuming no change in taxes or prices, what is the resulting equilibrium level of national income?
      A ₹200 million Correct Answer Incorrect Answer
      B ₹800 million Correct Answer Incorrect Answer
      C ₹400 million Correct Answer Incorrect Answer
      D ₹600 million Correct Answer Incorrect Answer
      E ₹500 million Correct Answer Incorrect Answer

      Solution

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