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प्रश्न
Calculate Change in Income (ΔY) for a hypothetical economy. Given that:
- Marginal Propensity to Consume (MPC) = 0.8, and
- Change in Investment (ΔI) = Rs. 1,000 crores
उत्तर
Given Δ I = Rs. 1,000 crores
MPC = 0.8
As we know,
Multiplier (K) = `1/(1 - "MPC") = 1/(1 - 0.8) = 1/0.2 = 5` times
We know,
`"K" = (triangle"Y")/(triangle"I")`
`5 = (triangle"Y")/1000`
ΔY = Rs. 5,000 crores
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संबंधित प्रश्न
In an economy investment is increased by Rs. 300 crore. If marginal propensity to consume is 2/3, calculate increase in national income.
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Autonomous consumption expenditure = 200
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(a) greater than 2
(b) less than 2
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An economy is in equilibrium. Calculate the Investment Expenditure from the following
National Income = 800
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Complete the following table:
|
Consumption expenditure (Rs) |
Savings (Rs) |
Income (Rs) |
Marginal propensity to Consume |
|
100 |
50 |
150 |
|
|
175 |
75 |
……. |
…… |
|
250 |
100 |
……. |
…… |
|
325 |
125 |
……. |
…… |
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| Column A | Column B | ||
| (1) | MPC | (a) | Ratio of Savings to Consumption |
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| (3) | APS | (c) | Ratio of Consumption to Savings |
| (4) | MPS | (d) | Ratio of Savings to Investment |
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