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In an economic 20% of increased income is saved how much will be the increase in income if investment increased by 10000 calculate |
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Answer» MPS = 20/100 K = 1/MPS = 1/(1/5) = 5 ΔY = K.ΔI Increase in income ΔY = 5 x 10,000 = 50,000 |
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