12th Class Economics Solved Paper - Economics 2011 Outside Delhi Set-II

In an economy the marginal properity to save is 0.4. National income in the economy increases by Rs. 200 crore as a result of change in investment. Calculate the change in investment.

Answer:

Given, Marginal propensity to save (MPS) = 0.4

Increase in national income (AY) = Rs. 200 Crore

We know that,

Multiplier (K) =

We also know that, K =

Change in investment = Rs. 80 crore.

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12th Class Economics Solved Paper - Economics 2011 Outside Delhi Set-II

question_answer In an economy the marginal properity to save is 0.4. National income in the economy increases by Rs. 200 crore as a result of change in investment. Calculate the change in investment.

In an economy the marginal properity to save is 0.4. National income in the economy increases by Rs. 200 crore as a result of change in investment. Calculate the change in investment.