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प्रश्न
In an economy, MPS = 0.2. Investment increases by 500 crore. Calculate the total increase in income.
संख्यात्मक
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उत्तर
Marginal Propensity to Save (MPS) = 0.2
Increase in Investment (ΔI) = ₹ 500 crore
k = `1/(MPS)`
= `1/0.2`
k = 5
ΔY = k × ΔI
= 5 × 500
= ₹ 2,500 crore
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