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Question
What is the formula for Propensity to invest?
Options
\[I_g=I_n+I_r\]
\[\mathrm{P_I}=\frac{I}{Y}\]
\[MPI=\frac{\Delta Y}{\Delta I}\]
\[I_n=I_g-I_r\]
MCQ
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Solution
Propensity to invest is expressed as \[\mathrm{P_I}=\frac{I}{Y}\]. Here, \[I\] is Aggregate Investment and \[Y\] is Aggregate Income.
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