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प्रश्न
An economy is in equilibrium. Calculate the Marginal Propensity to Save from the following:
National Income = 1000
Autonomous Consumption = 100
Investment = 120
उत्तर
Given that
National Income (Y) = 1000
Autonomous consumption = 100
Investment = 120
We know that
Y = C + I
`Y = barC + MPC(Y) + I`
Therefore,
1000 = 100 + MPC x 1000 + 120
MPC = 0.78
Marginal Propensity to Save =(1 - Marginal Propensity to Consume)
= (1 - 0.78) = 0.22
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