In the wake of the Wuhan virus pandemic the government of India has decided to invest 1100 crores in the economy to boost aggregate demand

Economics Dec 28, 2021

In the wake of the Wuhan virus pandemic the government of India has decided to invest 1100 crores in the economy to boost aggregate demand. Assuming the marginal propensity to consume is 0.85, calculate the total increase in income and consumption expenditure.(20 Marks)