The investment multiplier (k) is calculated using the formula: \(k =\frac {ΔY}{ΔI}\)
In this formula:
We are provided with k = 5 and ΔY = ₹800 crore, and we need to determine ΔI.
Substituting the given values into the formula yields:
\(5 = \frac {800}{ΔI}\)
To find ΔI, we rearrange the equation:
\(ΔI =\frac {800}{5}\)
Performing the calculation:
\(ΔI = 160\)
Therefore, the calculated value for ΔI is ₹160 crore.