Question

it is planned to make a new investment of 1400 crore in the economy how much will be the increase in the national income if marginal propensity to save is 0.4 . calculate​

Answer 1

Explanation:

change in income /1400 = 1/0.4

Change in income = 2.5(1400)

Change in income = 3500

Increase in national income is 3500