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Calculate Investment Expenditure from the Following Date About an Economy Which is in Equilibrium : National Income = 1000 Marginal Propensity to Save = 0.20 Autonomous Consumption Expenditure = 100 - Economics

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प्रश्न

Calculate investment expenditure from the following date about an economy which is in equilibrium :
National Income = 1000
Marginal propensity to save = 0.20
Autonomous consumption expenditure = 100

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उत्तर

Given that

National income (Y) = 1000

Marginal propensity to save (MPS) = 0.20

Autonomous consumption expenditure = 100

MPC(c) = 1 - MPS = 1 - 0.20 = 0.8

 As we know that

Y= C + I

Since `C = barC + cY`

We have

`Y = barC + cY + I`

`1000 = 100 + 0.8(1000) + I`

1000 = 900 + I

I = 100

Therfore, investment expenditure is Rs 100.

 

 

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2013-2014 (March) All India Set 2

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S. No. Content Rs (in crores)
1. Revenue Expenditure 100
2. Capital Receipts 40
3. Net Borrowings 38
4. Net Interest Payments 27
5. Tax Revenue 50
6. Non-tax Revenue 15

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S. No. Content Rs (in crores)
1. Revenue Expenditure 100
2. Capital Receipts 40
3. Net Borrowings 38
4. Net Interest Payments 27
5. Tax Revenue 50
6. Non-tax Revenue 15

Which of the following is a non-tax revenue for the government?


Calculate Investment expenditure from the following data about an economy that is in equilibrium.

National Income = Rs 1,000

Marginal Propensity to Save = 0.20

Autonomous consumption expenditure = Rs 100


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