Re: isi

Posted by lovekesh on May 05, 2012; 5:26pm
URL: http://discussion-forum.276.s1.nabble.com/isi-tp7530027p7530713.html

This is what i think about first question.
Since initially saving and investment were in equilibrium.
S=mY
I=0.3Y
S=I
m=0.3
ds/dy = 0.3
since ds=12
therefore dy= ds/0.3
dy= 40
change in equilibrium income comes out be 40 units.