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In an economy, with every increase …

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In an economy, with every increase in income, 10% of the rise in income is saved. Suppose a fresh investment of Rs. 120 crores take place in the economy. calculate change in income and change in consumption.

    • Posted by Pooja Agarwal 6 years, 5 months ago

    CBSE > Class 12 > Economics
    • 1 answers

    Alisha Wadhwa 6 years, 5 months ago

    MPS = 10% = 0.1 K = 1/mps = 10 K=∆Y/∆I 10×120= ∆y 1200=∆Y ans. MPC= 1-MPS=0.9 MPC=∆C/∆Y 0.9×1200=∆C 1080=∆C. Ans.

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