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In an economy every time income …

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In an economy every time income rises, 75% of the tise in income is spent on consumption.now suppose in the same economy investment rises by 750 crore Calculate the following... 1.change in income 2.change in saving

    • Posted by Aayushi Narang 6 years, 3 months ago

    CBSE > Class 12 > Economics
    • 1 answers

    Alisha Wadhwa 6 years, 3 months ago

    Here,MPC=0.75 ∆I=750 Then,,k = 1/1-MPC=4 And,k=∆Y/∆I 4×750=∆Y 3000=∆Y And ,,MPS=1-MPC=0.25 MPS=∆S/∆Y By putting values,we get ∆S=750 crore

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