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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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