JNU SSS 2010 Question 60: Keynesian cross and the multiplier

The next four questions 58–61 are based on the following :

Suppose, in equilibrium, aggregate income (in units of money per year) in an economy $Y = C + I$, where investment expenditure (in units of money per year) $I = 1000$ and aggregate consumption expenditure (in units of money per year) $C$ satisfies the following conditions :

(i) $C$ is a function of current disposable income in the economy $(Y_d)$

(ii) If $Y_d = 0$, then $C = 500$

(iii) Marginal propensity to save out of $Y_d$ is constant in the economy and equal to 30%

Suppose the government collects direct tax revenues equal to 15% of $Y$ and makes direct transfer payments equal to 750 units of money per year.

If instead of 750 units of money the government makes annual transfer payments equal to 10% of $Y$, then the value of the investment multiplier will