Government expenditure in an economy rises by $4000 while, at the same time, investment decreases by $1500. marginal propensity to save = 1/10; marginal propensity to tax = 1/5; marginal propensity to import = 1/10. What increase in national income will result from these changes?
- A$2500
- B$6250
- C$10 000
- D$25 000