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प्रश्न
Calculate Marginal Propensity to Consume from the following data about an economy
Which is an equilibrium:
National income = 2000
Autonomous Consumption expenditure = 200
Investment expenditure = 100
उत्तर
Given that
National income (Y) = 2000
Autonomous consumption expenditure = 200
Investment expenditure = 100
As we know that
Y = C + I
Since `C = barC + cY` we have
`Y = barC + cY + I`
By substituting the given values,we get
`2000 = 200 + c(2000) + 100`
`1700 = 2000c`
c = 0.85
Therfore, the marginal propensity to consume is 0.8
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संबंधित प्रश्न
Define marginal propensity to consume
An economy is in equilibrium. From the following data about an economy, calculate investment expenditure:
1) Income = 10000
2) Marginal propensity to consume = 0.9
3) Autonomous consumption = 100
Explain the Keynesian psychological law of consumption.
Fill in the blank with appropriate alternatives given in the bracket:
The part of income not spent is________.
Choose the correct answer :
The income which is not spent on consumption is known as _________.
Distinguish between Average propensity to consume and Marginal propensity to consume.
Write answers in ‘one’ or ‘two’ paras each :
Explain the concept of saving function.
Answer the following question.
State the objective factors determining consumption function.
Answer the following question.
What is meant by a propensity to consume?
Calculate the change in final income, if Marginal Propensity to Consume (MPC) is 0.8 and change in initial investment is ₹ 1,000 crores.
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
A firm is able to sell any quantity of a good at a given price. The firm's Marginal Revenue will be ______
Marginal Propensity to Save is equal to ______
Which of the following points are related to The sum of MPC and MPS is always equal to autonomous investments?
Which of the following points establish the relationship between MPS and MPC?
If MPC is 0.9, what is the value of the multiplier? How much investment is needed to increase national income by Rs 5,000 Crores
Average Propensity to Consume is equal to:
Which of the following statements is not correct?
In an economy 75 percent of the increase in income is spent on consumption. Investment increased by ₹ 1,000 crore.
Calculate the total increase in income on the basis of given information.
The value of ______ can be greater than one.
