Change in initial investment (∆I)=₹1200 crores Marginal propensity to save (MPS) =0.2
(a) Investment multiplier (k) =‌

1

MPS

=‌

1

0.2

=5
(b) Change in final income (∆Y)= ?
K‌=‌

∆Y

∆I

∆Y‌=K×∆I
‌=5×1200=₹6000‌ crores ‌