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Question
If the value of the multiplier is 4, what will be the effect on the income of an economy if investment increases by Rs 100 crore?
Options:
A .  Income will not change
B .  Income will decrease by Rs 400 crore
C .  Income will increase by Rs 400 crore
D .  Income will increase by Rs 500 crore
Answer: Option C
:
C
Income will increase by Rs 400 crore.

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