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प्रश्न
Calculate investment expenditure from the following data about an economy which is in equilibrium:
National income = 1500
Autonomous consumption expenditure = 300
Investment expenditure = 300
उत्तर
As we know that
Y = C + I
where
I (Investment expenditure) = 300
Y (National income) = 1500
`C = barC + cY`
where
`barC` (autonomous expenditure)= 300
c = marginal propensity to consume
Thus, applying all the values in equation
`C = barC + cY + I`
`1500 = 300 + c xx 1500 + 300`
`c = (1500 - 600)/1500 = 0.6`
Thus, marginal propensity to consumeis 0.6
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