To find the change in investment, we use the formula:
Change in Income = Investment Multiplier × Change in Investment
Here, we know:
- Investment Multiplier = 5
- Increased Income = ₹ 800 crore
We can rearrange the formula to find the change in investment:
Change in Investment = Increased Income / Investment Multiplier
Now, substituting the values:
Change in Investment = ₹ 800 crore / 5
Change in Investment = ₹ 160 crore