due to an increase investment the national income increased by 10,000 – InterviewSolution

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1.	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» Change in INVESTMENT = 2000Explanation: GIVEN: MPS= 20% or 0.2Change in INCOME = 10000So, K= 1/MPS then K= 1/0.2We know that K= change in income / change in Investment 1/0.2= 1000/change in Investment Therefore, change in Investment = 2000

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