Introduction:
In a hypothetical economy, it is given that when the national income increases by 100 crore, the savings increase by 20 crore. We need to determine the additional investments required to attain an increase in national income by 6,000 crore.

Given:
- Savings increase by 20 crore when national income increases by 100 crore.

Calculation:
To calculate the additional investments needed to attain an increase in national income by 6,000 crore, we can use the concept of the marginal propensity to save (MPS) and the multiplier effect.

Marginal Propensity to Save (MPS):
The marginal propensity to save (MPS) is the proportion of additional income that individuals choose to save rather than spend. In this case, the MPS can be calculated as the ratio of the increase in savings (20 crore) to the increase in national income (100 crore).

MPS = Increase in Savings / Increase in National Income
MPS = 20 crore / 100 crore
MPS = 0.2

Multiplier Effect:
The multiplier effect refers to the phenomenon where an initial change in spending leads to a more significant final change in national income. It is calculated using the formula:

Multiplier = 1 / (1 - MPS)

In this case, the multiplier can be calculated as:

Multiplier = 1 / (1 - 0.2)
Multiplier = 1 / 0.8
Multiplier = 1.25

This means that for every 1 crore increase in investments, the national income will increase by 1.25 crores.

Additional Investments:
To calculate the additional investments needed to attain an increase in national income by 6,000 crore, we can use the multiplier effect formula:

Additional Investments = Increase in National Income / Multiplier
Additional Investments = 6,000 crore / 1.25
Additional Investments = 4,800 crore

Conclusion:
To attain an increase in national income by 6,000 crore, additional investments of 4,800 crore would be needed. This calculation is based on the given information that savings increase by 20 crore when national income increases by 100 crore, and the concept of marginal propensity to save (MPS) and the multiplier effect.

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