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In an economy, 20 % of increasec income ...

In an economy, 20 % of increasec income is saved. How much will be the increase in income if investment rises by 10, 000 ? Calculate.

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Verified by Experts

`" "MPS= 0.2 ` (20 % of increased income is saved)
`" "K= (1)/(MPS)= (1)/(0.2)= 5`
`" "K= (DeltaY)/(DeltaI), 5= (Delta Y )/(10,000)`
`" "Delta Y= 50,000`
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RADHA BHUGANA-INCOME DETERMINATION AND MULTIPLIER-Practical Application
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