In a closed economy, the marginal propensity to save is 0.1 and the marginal propensity to pay taxes is also 0.1. Both of these remain constant and do not change as income changes. What will be the increase in national income if $100 million is injected into the circular flow?
- A$1000 million
- B$500 million
- C$100 million
- D$80 million