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प्रश्न
If an economy plans to increase its income by ₹ 2,000 crore and the Marginal Propensity to Consume is 75%. Estimate the increase in investment required to achieve the targeted increase in income.
उत्तर
Given, MPC = 0.75, ΔY = ₹ 2,000 Crore
K = `1/(1 - "MPC")`
= `1/(1 - 0.75)`
= `1/(1 - 0.25)`
= 4
According to the question:
K = `(Δ"Y")/(Δ"I")`
4 = `2000/(Δ"I")`
ΔI = `2000/4`
= ₹ 500 Crore
Therefore, increase in investment (ΔI) required = ₹ 500 Crore.
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संबंधित प्रश्न
Discuss the working of the adjustment mechanism in the following situation:
Ex Ante Investments are lesser than Ex Ante Savings.
Given the following data, find the missing values of 'Private Final Consumption Expenditure' and 'Operating Surplus'.
| S.No. | Particulars | Amount (In ₹ crores) |
| (i) | National Income | 50,000 |
| (ii) | Net Indirect Taxes | 1,000 |
| (iii) | Private Final Consumption Expenditure | ? |
| (iv) | Gross Domestic Capital Formation | 17,000 |
| (v) | Profits | 1,000 |
| (vi) | Government Final Consumption Expenditure | 12,500 |
| (vii) | Wages & Salaries | 20,000 |
| (viii) | Consumption of Fixed Capital | 700 |
| (ix) | Mixed Income of Self Employed | 13,000 |
| (x) | Operating Surplus | ? |
| (xi) | Net Factor Income from Abroad | 500 |
| (xii) | Net Exports | 2,000 |
State the meaning of the following:
Ex-Ante Savings
Discuss the adjustment mechanism in the following situation :
Ex-Ante Investments are greater than Ex-Ante Savings.
With the increase in investment, MEC ______
Under Keynesian framework income is measured along ______.
Keynesian economics came to be widely accepted because it finds solution to ______.
If MPC = 0.5 and the initial investment is 100 Rs crores, the income generated in the economy will be ______
When an economy they’re to save all its extra income then investment calculation will be ______
An increase in planned investment spending causes aggregate output to ______.
Categories the following as induced investment and autonomous investment.
The government has set up public health centres in rural areas
Calculate the equilibrium level of income in the economy.
C = 500 + (0.9)Y
Investment expenditure = 3,000
______ refers to the planned or intended investment during a particular period of time.
______ refers to the actual level of investment during a particular period of time.
What happens when the Investment is lesser than Savings?
Savings and Investments affect the ______
