Option 3: 200 crores -> When the economy saves 25% of additional income, the Marginal Propensity to Save (MPS) = 0.25. The multiplier (k) = 1/MPS = 1/0.25 = 4. Therefore, additional income generated = Multiplier × Investment increase = 4 × 50 crores = 200 crores. This demonstrates the multiplier effect where initial investment creates a ripple effect of spending and income generation throughout the economy. -> correct