Monday, November 7, 2011

Who can help with math economy question?

In a closed economy with neither government expenditure nor taxation, the initial income is $2000 million. All savings are carried out by consumers, who save 25% of any income received above $20 million. Businessmen plan to invest $200 million. After equilibrium is reached, investment increases by $100 million. By how much would National Income have to rise to reach a new equilibrium?

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