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Ca inter fm eco Feb exam question

Please can say what's the answer of this question

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Laxman kumar

Laxman kumar

CA Final

4K+

23-Feb-21 18:18

35

Answers (1)

Govt. Exp is up by 6 billions This means, there is increase in income by 6 billions. Multiplier (m) = 1 / (1- MPC) = 1 / (1- 0.8 ) = 5 Also, m = Change in C / change in Y Change in C = 5 x 6 billions = 11 billions Therefore, GDP will increase by 11 billions.


Ishika Goel 282

Ishika Goel 282

CA Inter

2K+

23-Feb-21 19:14

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