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प्रश्न
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.
उत्तर
MPC = 75% = 0.75
ΔI = 1,000
ΔY = ?
K = `1/(1 - "MPC")`
= `1/(1-0.75)`
= `1/0.25`
= 4
K = `"ΔY"/"ΔI"`
4 = `"ΔY"/1000`
`4 xx 1000` = ΔY
₹ 4,000 = ΔY
Thus, the increase in income = ₹ 4,000 crores.
संबंधित प्रश्न
............... consumption can not be zero.
(Induced / Autonomous / Government / Private)
In an economy investment is increased by Rs. 300 crore. If marginal propensity to consume is 2/3, calculate increase in national income.
Define marginal propensity to consume
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 |
Find equilibrium national income:
Autonomous consumption expenditure = 120
Marginal propensity to consume = 0.9
Investment expenditure = 1100
An economy is in equilibrium. Find marginal propensity to consume :
Autonomous consumption
Expenditure = 100
Investment expenditure = 100
National Income = 2,000
An economy is in equilibrium. From the following data about an economy calculate autonomous consumption.
1) Income = 500
2) Marginal propensity to save = 0.2
3) Investment expenditure = 800
An economy is in equilibrium. From the following data, calculate the marginal propensity to save:
1) Income = 10,000
2) Autonomous consumption = 500
3) Consumption expenditure = 8,000
An economy is in equilibrium. Calculate national income from the following :
Autonomous consumption = 100
Marginal propensity to save = 0.2
Investment expenditure = 200
Give reasons or explain the following statement:
Income which is not saved is consumption.
Write answers in ‘one’ or ‘two’ paras each :
Explain the concept of saving function.
Define or explain the following concept
Marginal Cost.
Answer the following question.
State the objective factors determining consumption function.
An economy is in equilibrium. From the following data calculate investment expenditure :
(i) Marginal propensity to consume = 0·9
(ii) Autonomous consumption = 200
(iii) Level of income = 10000
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 ____________.
If MPC is less than one, it follows that ______
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
The simplest consumption function assumes ______
Average Propensity to Consume is equal to:
'Consumption function curve of an involuntary unemployed workers start from some positive level on Y-axis even at zero level of Income'. Justify the given statement.
