हिंदी

If in an Economy : Change in Initial Investments (∆I) = ₹ 500 Crores Marginal Propensity to Save (Mps) = 0.2 Find the Values of the Following: (A) Investment Multiplier (K), (B) Change in Final - Economics

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प्रश्न

If in an economy :
Change in initial Investments (∆I) = ₹ 500 crores
Marginal Propensity to Save (MPS) = 0.2

Find the values of the following:
(a) Investment multiplier (k),
(b) Change in final income (∆Y)
योग
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उत्तर

(a) We, Know,

`"k" = (1)/"MPS" =(1)/(0.2) = 5`

So, investment multiplier is 5.

(b) We also Know,

`"k" = (Δ"Y")/(Δ"I")`

5 = `(Δ"Y")/(500)`

ΔY = 2,500.

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2018-2019 (March) 58/1/1
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