If an additional investment of Rs, 500 crores increases the income by 500 crores in the first round of the - Economics - Determination of Income and Employment

Question

If an additional investment of Rs, 500 crores increases the income
by 500 crores in the first round of the multiplier process, by Rs
450 crores in the second round by Rs 405 crores in the third round
and so on Determine the total increases in income

"â€‹Isme 90% kaise aaya? i m getting
confused where 90% comes from 2nd and 3rd rounds"

Mayank Rastogi · Accepted Answer

Cause 10% is retained whereas 90% is used for further
investment
money multiple= 1/ LRR i e 1/ 10%
which implies that the money would be a multiple of 10 times at the
end

please tell me if you understand what i want you to understand