Mathematics · Macroeconomics
When the Marginal Propensity to Consume (MPC) is 0.75, a decrease in taxes by Rs. 20 crore will increase the Equilibrium GDP by how much?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Rs. 60 crore✓
- 2Rs. 80 crore
- 3Rs. 100 crore
- 4Rs. 200 crore
Correct answer
Rs. 60 crore
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