Answer:
Given, Increase in Investment\[(\Delta I)\]=Rs.100 crore; Increase in Income\[(\Delta Y)\]= Rs.250 crore We know that, Investment Multiplier (K)=\[\frac{\Delta \,\,Y}{\Delta \,\,I}\Rightarrow \frac{\Delta \,\,Y}{\Delta \,\,I}=\frac{250}{100}=2.5\] This implies that for every unit increase in investment, income increases 2.5 times.
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