Question

Find Consumption Expenditure from the following:

National Income	= Rs 5,000
Autonomous Consumption	= Rs 1,000
Marginal propensity to consume	= 0.80

Answer 1

Given 

NationalIncome=`Rs 5,000` 

Autonomous Consumption= Rs`1,000` 

MPC=`0.80` 

We know, 

C=`barc`+ by 

Substituting the values,

C=1000+0.8xx5000 

or, C=Rs 5000