In an economy an increase in investment leads to increase in national income which is three times more than increse - Economics - Money and Banking

Question

In an economy an increase in investment leads to increase in
national income which is three times more than increse in
investment Calculate MPC MPS and investment multiplier

Prabhat Agrawal · Accepted Answer

Let the investment increases by Rs 1000, and the income increases
by Rs 3000

ΔI = 1000ΔY = 30001 Multiplier=k=ΔY ΔI k =
30001000=32 k = 1MPS 3=1MPSMPS = 13 = 0 333 MPC = 1-MPS = 1- 33 =
67

In an economy an increase in investment leads to increase in national income which is three times more than increse in investment. Calculate MPC MPS and investment multiplier