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प्रश्न
Answer the following question.
In an economy, investment increased by 1,100 and as a result of it income increased by 5,500. Had the marginal propensity to save been 25 percent, what would have been the increase in income?
उत्तर
In an economy, if the investment increased by 1,100 and had the marginal propensity to save been 25 percent, then the increase in income can be calculated as follows:
`"k" = (1)/"MPS" = (Δ"Y")/(Δ"I")`
`"k" = (1)/(0.25) = (Δ""Y")/(1100)`
or, `(1)/(0.25) = (Δ"Y")/(1100)`
So, ΔY = 4,400
Thus, we can observe that an increase in the investment by Rs 1,100 will result in an increase in income and output by Rs 4,400.
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संबंधित प्रश्न
Complete the following table:-
| Income (Rs) | Consumption expenditure (Rs) | Marginal propensity to save | Average propensity to save |
| 0 | 80 | ||
| 100 | 140 | 0.4 | ....... |
| 200 | ........ | ...... | 0 |
| ....... | 240 | ........ | 0.20 |
| ......... | 260 | 0.8 | 0.35 |
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