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प्रश्न
An economy is in equilibrium. Calculate the Investment Expenditure from the following
National Income = 800
Marginal propensity to save = 0.3
Autonomous Consumption = 100
उत्तर
Given that
National Income(Y) = 800
Marginal Propensity Save = 0.3
Therefore,
MPC = 1 - MPS
= 1 - 0.3 = 0.7
`barC = 100`
We know that
Y = C + I
`Y = barC + MPC(Y) + I`
800 = 100 + 0.7 x 800 + I
I = 140
Thus, the investment expenditure is Rs 140.
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संबंधित प्रश्न
Define marginal propensity to consume
Find equilibrium national income:
Autonomous consumption expenditure = 120
Marginal propensity to consume = 0.9
Investment expenditure = 1100
An economy is in equilibrium. Find investment expenditure:
National Income =1,000
Autonomous Consumption =100
Marginal propensity to consume =0.8
If the marginal propensity to consume is greater than marginal propensity to save, the value of the multiplier will be (Choose the correct alternative)
(a) greater than 2
(b) less than 2
(c) equal to 2
(d) equal to 5
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 Marginal Propensity to Save from the following :
National Income = 1,000
Autonomous Consumption = 100
Investment Expenditure = 200
Define or explain the concept Average propensity to save .
Explain the following concepts or give definitions.
Consumption
Answer the following question.
State the objective factors determining consumption function.
What will be APC when APS = 0?
The relation between APC and MPC in Keynes Psychological consumption function is ______.
Which or is true?
The relation between consumption and savings are ______
A consumer spending on the purchase of goods regardless of the income in possession is an example of _______ consumption.
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
Identify the correct pair of from the following Columns I and II:
| Columns I | Columns II |
| 1. Total Product increases at an increasing rate and Marginal Product rises till it reaches its maximum point. | (a) Second Stage |
| 2. Total product increases at a decreasing rate and reaches maximum, and MP becomes zero. | (b) First Stage |
| 3. Total product also decreases and marginal product (MP) becomes negative. | (c) Third Stage |
| 4. Improvement in technique of production and discovery of fixed factor substitute can postpone the operation of law for some time. | (d) Fourth Stage |
If the value of Average Propensity to Save (APS) is 0.2 and National Income is ₹4,000 crores, then consumption will be ______
If the marginal propensity to consume is greater than marginal propensity to save, the value of the multiplier will be:
When National Income rises from ₹ 600 Cr. to ₹ 1000 Cr., the consumption expenditure increases from ₹ 500 Cr. to ₹ 800 Cr. Calculate MPC and hence the value of Investment Multiplier.
