When is an economic investment increases by Rs 1100 and MPC is 0.5. Calculate change in income.

2200

The correct answer is option (3) : 2200

The change in income can be calculated using the formula :

Change in Income = $\frac{\text{Change in Investment}}{MPC}$

Given that the change in investment is Rs 1100 and MPC is 0.5

Change in Income = $\frac{1100}{0.5}=2200$

Therefore, the correct answer is (3) 2200.