If the value of Investment Multiplier is 5 and the increased income is ₹800 crore in an economy, then find the value of change in the investment in the economy.

₹4000 crore ₹120 crore ₹400 crore ₹160 crore

₹160 crore

The correct answer is Option (4) → ₹160 crore Investment Multiplier (k) = 5 Increased Income (ΔY) = ₹800 crore   Investment Multiplier (k)=ΔY /ΔI   Change in the investment (ΔI) = (ΔY)/k   ΔI = 800/5 = ₹160 crore   Change in the investment (ΔI) = ₹160 crore