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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
Marginal propensity to consume + marginal propensity to save ......................... '
(zero \ one \ less \ more)
In an economy investment is increased by Rs. 300 crore. If marginal propensity to consume is 2/3, calculate increase in national income.
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. Calculate Marginal Propensity to Save from the following :
National Income = 1,000
Autonomous Consumption = 100
Investment Expenditure = 200
Explain the following concepts or give definitions.
Consumption
Distinguish between Average propensity to consume and Marginal propensity to consume.
The consumption function of an economy is : C = 40 + 0.8 Y (amount in ₹ crores). Determine that level of income where the average propensity to consume will be one.
Answer the following question.
Which of the two, average propensity to consume or average propensity to save, can be negative, and why?
If in an economy :
Change in initial Investment (∆I) = ₹ 700 crores
Marginal Propensity to Save (MPS) = 0.2
(a) Investment Multiplier (k)
(b) Change in final income (∆Y)
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 ____________.
The relation between APC and MPC in Keynes Psychological consumption function is ______.
Calculate equilibrium level of income for a hypothetical economy, for which it is given that:
- Autonomous Investments = ₹ 500 crores, and
- Consumption function, C = 100 + 0.80Y
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
______ buy goods and services for consumption and also supply factors of production.
MPC = 1 − MPS. It is ______
The sum of MPC and MPS is always equal to _____
Which of the following points establish the relationship between MPS and MPC?
Which of the following statements is not correct?
Complete the following table:
| INCOME (Y) |
SAVING (S) |
APC |
| 0 | (-) 12 | |
| 20 | 6 |
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.
