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प्रश्न
If in an economy, the Investment Multiplier is 4 and Autonomous Consumption is ₹ 30 crore, the relevant consumption function would be ______.
विकल्प
C = 30 + 0.75Y
C = (-) 30 + 0.25Y
C = 30 + 0.25Y
C = (-) 30 + 0.25Y
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उत्तर
If in an economy, the Investment Multiplier is 4 and Autonomous Consumption is ₹ 30 crore, the relevant consumption function would be C = 30 + 0.75Y.
Explanation:
Investment Multiplier `(k)` = 4
Autonomous Consumption `(bar"C")` = ₹ 30 crore
K =`1/(1-"MPC")`
4 = `1/(1-"MPC")`
MPC = `1/4`
MPC = 0.25
MPC = 1 - 0.25
MPC = 0.75
Consumption Function:
C = `bar"C" + "MPC (Y)"`
C = 30 + 0.75 Y
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