Question

due to an increase investment the national income increased by 10,000 karod if 20% of additional income is saved calculate the increase in investment​

Answer 1

Answer: Change in Investment = 2000

Explanation:

GIVEN: MPS= 20% or 0.2

Change in income = 10000

So,

K= 1/MPS then K= 1/0.2

We know that K= change in income / change in Investment

1/0.2= 1000/change in Investment

Therefore, change in Investment = 2000