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प्रश्न
An economy is in equilibrium. Find Marginal Propensity to Consume from the following:
National income = 2000
Autonomous consumption = 400
Investment expenditure = 200
उत्तर
National income (Y) = 2000
Autonomous consumption expenditure = `bar(C) = 400`
Investment expenditure (I) = 200
We know that at equilibrium
` C = bar(C) + MPC(Y)`
where,
`barC` represents autonomous consumption expenditure
MPC represents marginal propensity to consume
So,
`Y = bar(C) + MPC(Y) + I`
With thegiven values
2000 = 400 + MPC(2000) + 200
2000 = 600 + 2000MPC
MPC = 0.7
Thus,marginal propensity to consume is 0.7
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