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An Economy is in Equilibrium. Find Investment Expenditure: National Income =1,000 Autonomous Consumption =100 Marginal Propensity to Consume =0.8 - Economics

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प्रश्न

An economy is in equilibrium. Find investment expenditure: 

National Income =1,000

Autonomous Consumption =100

Marginal propensity to consume =0.8

उत्तर

Given that

Y =  Rs 1,000

`barC= Rs100`

c = 0.8

We know that

Y = C +I

`1000=barC+cY+1`

1,000 = 100 + 0.8 x 1,000 + I

1,000 = 900 + I

I = Rs 100

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2015-2016 (March) All India Set 3

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