If Marginal Propensity to Save (MPS) is 0.25 and initial change in investment is ₹250 crores, then the final
change in income would be.
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Explanation:
MPS=0.25 Investment =250crores so that what is income ? . , j. k = 1/1-mpc ya k= 1/mps j. k= 1/0.25 = 4 ,k= 4 , so that.k= Delta y divided by Delta I 4= Delta Y divided by 250 = y= 1000
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