Assume that there are following changes occurring in open economy separately Find their effects on n...........

Economics -II Concept of National Income and Social Accounting

Assume that there are following changes occurring in open economy separately. Find their effects on national income and Balance of Trade, individually, assuming that marginal propensity to save is 0·1 and marginal propensity to import in the • economy is 0·15. Find the effects of: (i) Domestic investments increase by Rs. 100 crores (ii) Exports increase by Rs. 100 crores (iii) Imports increase by Rs. 100 crores. (300 words) (20 Marks)

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