The income created in an economy is double the autonomous investment. Find out the value of MPS and MPC.
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Answer:
he Size or Value of Investment Multiplier: ADVERTISEMENTS: The multiplier tells us how much increase in income occurs when autonomous investment increases by Rs. 1, that is, investment multiplier ∆Y/∆I is and its value is equal to 1/1-b where b stands for marginal propensity to consume (MPC The income created in an economy is double the autonomous investment. Find out the value of MPS and MPC. If in an economy investment is greater than saving, national ... If MPC and MPS are equal, value of multiplier is, .... Calculate Equilibrium level of national income and ... The theory of determination of national income is concerned with finding out the equilibrium ... Income Determination by Saving and Investment ... So the sum of MPC and MPS = 1.