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Indian economy investment increased by 1100 …

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Indian economy investment increased by 1100 as a result of it income increased by 5500 at the marginal propensity to save had Bean 25 percent what would have been the increase in income
  • 2 answers

Kumar Nitin 4 years, 8 months ago

MPS = 0.25 K = 1/MPS K = 1/0.25 = 4 K = Change in Income / Change in Investment 4 = Change in Income / 1100 Change in Income = 4 X 1100 Change in Income = 4400

Kumar Nitin 4 years, 8 months ago

MPS = 0.25 K = 1/MPS K = 1/0.25 K = 4 K is also equal to, K = Change in Y / Change in I 4 = Change in Income / 1100 Change in Income = 1100 X 4 Change in Income = 4400
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