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Question
Complete the following table:-
| Income (Rs) | Consumption expenditure (Rs) | Marginal propensity to save | Average propensity to save |
| 0 | 80 | ||
| 100 | 140 | 0.4 | ....... |
| 200 | ........ | ...... | 0 |
| ....... | 240 | ........ | 0.20 |
| ......... | 260 | 0.8 | 0.35 |
Solution
| Income (Rs) | Consumption expenditure (Rs) | Marginal propensity to save |
Average propensity to save (S ÷ Y) |
Savings (Y - C) |
Marginal Propensity to Consume |
| 0 | 80 | -80 | |||
| 100 | 140 | 0.4 | -0.4 | -40 | 0.6 |
| 200 | 200 | 0.4 | 0 | 0 | 0.6 |
| 300 | 240 | 0.6 | 0.20 | 60 | 0.8 |
| 400 | 260 | 0.8 | 0.35 | 140 | 0.2 |
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