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प्रश्न
If increase in National Income is equal to increase in Savings, the value of Marginal Propensity to Consume would be ______.
पर्याय
equal to unity
greater than one
less than one
equal to zero
उत्तर
If increase in National Income is equal to increase in Savings, the value of Marginal Propensity to Consume would be equal to zero.
Explanation:
Increase in National Income = Increase in Saving
Or
ΔY = ΔS
We Know that = ΔY = ΔC + ΔS
ΔY - ΔS = ΔC
ΔY - ΔY = ΔC
(Because here, ΔY = ΔC)
0 = ΔC
Now, MPC = `"ΔC"/"ΔY"`= `0/"ΔY"` = 0
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संबंधित प्रश्न
Define marginal propensity to consume
An economy is in equilibrium. Calculate Marginal Propensity to Consume :
National income = 1000
Autonomous consumption expenditure = 200
Investment expenditure = 100
Suppose marginal propensity to consume is 0.8. How much increase in investment is required to increase national income by Rs. 2000 crore? Calculate.
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
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(ii) Marginal propensity to consume = 0.2
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Autonomous Consumption = 120
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Calculate Marginal Propensity to Consume from the following data about an economy
Which is an equilibrium:
National income = 2000
Autonomous Consumption expenditure = 200
Investment expenditure = 100
Answer the following question.
What is meant by a propensity to consume?
What will be APC when APS = 0?
Which or is true?
______ buy goods and services for consumption and also supply factors of production.
Which of the following statement is true?
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What is saving per Income called?
If the marginal propensity to consume is greater than marginal propensity to save, the value of the multiplier will be:
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