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प्रश्न
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
उत्तर
Given Δ I = Rs. 1,000 crores
MPC = 0.8
As we know,
Multiplier (K) = `1/(1 - "MPC") = 1/(1 - 0.8) = 1/0.2 = 5` times
We know,
`"K" = (triangle"Y")/(triangle"I")`
`5 = (triangle"Y")/1000`
ΔY = Rs. 5,000 crores
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संबंधित प्रश्न
Find equilibrium national income:
Autonomous consumption expenditure = 120
Marginal propensity to consume = 0.9
Investment expenditure = 1100
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
An economy is in equilibrium. Calculate the National Income from the following :
Autonomous Consumption = 120
Marginal Propensity to Save = 0.2
Investment Expenditure = 150
An economy is in equilibrium. Calculate Autonomous Consumption from the following :
National Income = 1,250
Marginal Propensity to Save = 0.2
Investment Expenditure = 150
Write explanatory answer:
Explain the subjective and objective factors determining consumption function.
Explain the following concepts or give definitions.
Consumption
Answer in brief.
Explain the relationship between Income and Consumption.
Distinguish between Average propensity to consume and Marginal propensity to consume.
Define 'or' explain the following concept.
Propensity to save
Answer the following question.
In an economy, investment increased by 1,100 and as a result of it income increased by 5,500. Had the marginal propensity to save been 25 percent, what would have been the increase in income?
Which or is true?
Which of the following points are related with marginal propensity to consume?
In an economy, 75 percent of the increase in income is spent on consumption. Investment is increased by Rs 1,000 crore. Calculate the Total increase in income?
The rate of increase in ______ due to a unit increment in income is called marginal propensity to consume.
If in an economy, the value of investment multiplier is 4 and Autonomous Consumption is ₹ 30 Crore, the relevant consumption function would be :
If increase in National Income is equal to increase in consumption, identity the value of Marginal Propensity to Save:
Assertion (A): Saving curve makes a negative intercept on the vertical axis at zero level of income.
Reason (R): Saving function refers to the functional relationship between saving and income.
An Economy is in equilibrium, calculate the Marginal Propensity to Save (MPS) from the following:
- National Income (Y) = ₹ 4,400
- Autonomous Consumption `bar("C")` = ₹ 1,000
- Investment Expenditure (I) = ₹ 70
The value of ______ can be greater than one.
APC can be greater than one, but MPC is always less than one. Give a reason to justify this phenomenon.
