1.

In an economic 20% of increased income is saved how much will be the increase in income if investment increased by 10000 calculate

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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