1.

In an economy investment increased by 1,100 and as a result of it income increased by 5,500. Had the MPS been 25 percent, what would have been the increase in income ?

Answer»

Solution :`DELTAY = DELTAI = (1)/(MPS)`
`5,500 = (1,100)/(MPS)`
`MPS = (1,100)/(5,500) = 0.20`
`DELTA Y = (1,100)/(0.25) = 4,400`


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