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प्रश्न
Calculate the change in final income, if Marginal Propensity to Consume (MPC) is 0.8 and change in initial investment is ₹ 1,000 crores.
उत्तर
The marginal propensity to consume = 0.8
The change in the initial investment = Rs 1000
Multiplier K = `1/(1-MPC)`
= `1/(1-0.8)`
= 5
Multiplier K = `"change in income"/"change in investment"`
`5 = "change in income"/1000`
Change in income = 1000 x 5 = Rs 5000.
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संबंधित प्रश्न
In an economy an increase in investment by Rs 100 crore led to ‘increase’ in national by Rs 1000 crore. Find marginal propensity to consume.
An economy is in equilibrium. From the following data calculate autonomous consumption.[4]
(i) Income = 10,000
(ii) Marginal propensity to consume = 0.2
(iii) Autonomous consumption = 1,500
Define marginal propensity to save.
An economy is in equilibrium. Find 'autonomous consumption' from the following:
National income = 1000
Marginal propensity to consume = 0.8
Investment expenditure = 100
An economy is in equilibrium. Find the Investment Expenditure from the following :
National Income = 750
Autonomous Consumption = 200
Marginal Propensity to Save = 0.4
Define or explain the concept Average propensity to save .
State whether the following statements are True or False with reasons:
Increase in consumption expenditure is less than increase in income.
Write answers in ‘one’ or ‘two’ paras each :
Explain the concept of saving function.
Give reason or explain the following statement
Demand for necessary goods is inelastic.
MPC = MPS = ?
The value of MPC is ______
Which of the following points are related to The sum of MPC and MPS is always equal to autonomous investments?
The rate of increase in ______ due to a unit increment in income is called marginal propensity to consume.
If MPS = 0, the value of multiplier will be ______
Average Propensity to Consume is equal to:
Which of the following statements is not correct?
Assertion (A): Saving curve makes a negative intercept on the vertical axis at zero level of income.
Reason (R): Saving function refers to the functional relationship between saving and income.
