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Question
Complete the following table:
|
Consumption expenditure (Rs) |
Savings (Rs) |
Income (Rs) |
Marginal propensity to Consume |
|
100 |
50 |
150 |
|
|
175 |
75 |
……. |
…… |
|
250 |
100 |
……. |
…… |
|
325 |
125 |
……. |
…… |
Solution
|
Consumption Expenditure (C) |
Savings (S) |
Income (Y = C+S) |
Marginal Propensity to Consume `c=(ΔC)/(ΔY)` |
|
100 |
50 |
150 |
- |
|
175 |
75 |
250 (= 175+75) |
0.75 (=75 ÷ 100) |
|
250 |
100 |
350 (= 250+100) |
0.75 (=75 ÷100) |
|
325 |
125 |
450 (= 325+125) |
0.75 (=75 ÷100) |
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