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प्रश्न
An economy is in equilibrium. Calculate Autonomous Consumption from the following :
National Income = 1,250
Marginal Propensity to Save = 0.2
Investment Expenditure = 150
उत्तर
Given that
Marginal propensity to save S = 0.2
Marginal propensity to consume c 1 - MPS = 1 - 0.2 = 0.8
Investment expenditure(I) = 150
NationalIncome(Y) = 1250
As we know that
Y= C + I
`Y = bar(C) + MPC(Y) + I`
`1250 = bar(C) + 0.8 xx 1250 + 150`
`1250 = bar(C) + 1000 + 150`
Autonomous Consumption = `(barC)` = 100
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संबंधित प्रश्न
Complete the following table:-
Income (Rs) | Consumption expenditure (Rs) | Marginal propensity to save | Average propensity to save |
0 | 80 | ||
100 | 140 | 0.4 | ....... |
200 | ........ | ...... | 0 |
....... | 240 | ........ | 0.20 |
......... | 260 | 0.8 | 0.35 |
Assuming that increase in investment is Rs1000 crore and marginal propensity to consume is 0.9, explain the working of the multiplier.
An economy is in equilibrium. From the following data about an economy, calculate investment expenditure:
1) Income = 10000
2) Marginal propensity to consume = 0.9
3) Autonomous consumption = 100
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1) Income = 10,000
2) Autonomous consumption = 500
3) Consumption expenditure = 8,000
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National Income = 1000
Autonomous Consumption = 100
Investment = 120
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Autonomous Consumption = 120
Marginal Propensity to Save = 0.2
Investment Expenditure = 150
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