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प्रश्न
Calculate investment expenditure from the following data about an economy which is in equilibrium:
National income = 1000
Marginal propensity to save = 0.25
Autonomous consumption expenditure = 200
उत्तर
As we know that
Y=C+I
or
`Y=bar C+cYd+I` (i)
`C=bar C+cY`
Given that
`bar C`is autonomous consumption expenditure = 200
c is marginal propensity to consume 1 mps
When mps = 0.25
c=1-0.25=0.75
Income (y) = 1000
Apply all the values in equation (i)
1000=200+0.75x1000+I
I+1000-200+750=50
Thus, investment expenditure is 50.
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संबंधित प्रश्न
............... consumption can not be zero.
(Induced / Autonomous / Government / Private)
Complete the following table:-
| Income (Rs) | Consumption expenditure (Rs) | Marginal propensity to save | Average propensity to save |
| 0 | 80 | ||
| 100 | 140 | 0.4 | ....... |
| 200 | ........ | ...... | 0 |
| ....... | 240 | ........ | 0.20 |
| ......... | 260 | 0.8 | 0.35 |
An economy is in equilibrium. Find marginal propensity to consume :
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(i) Income = 10,000
(ii) Marginal propensity to consume = 0.2
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Choose the correct answer :
When income increases consumption and saving will _________.
In a hypothetical economy, Mr. Neeraj has deposited ₹100 in the bank. If it is assumed that there is no other currency circulation in the economy, then the total money supply in the economy will be ____________.
A consumer spending on the purchase of goods regardless of the income in possession is an example of _______ consumption.
Complete the following schedule -
| Y | C | APC | MPC |
| 100 | 90 | ? | ? |
| 120 | 108 | ? | ? |
Which of the following statement is true?
Which of the following points are related with marginal propensity to consume?
What is "MPS" or the 'marginal propensity' to save?
If the marginal propensity to consume is greater than marginal propensity to save, the value of the multiplier will be:
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Reason (R): Saving function refers to the functional relationship between saving and income.
The value of ______ can be greater than one.
Complete the following table:
| INCOME (Y) |
SAVING (S) |
APC |
| 0 | (-) 12 | |
| 20 | 6 |
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