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