Autonomous increase in investment always causes an autonomous increase in income.
True
False
False. While investment is autonomous, increase in income is induced through increase in expenditure.
If income increases from 3,000 to 4,000, and autonomous investment increases by 200, the MPC should be
If autonomous expenditure by the government increases by Rs 5,000, find increase in equilibrium GDP when half of income is always spent on the purchase of goods for consumption.