Question

If the value of Average Propensity to Consume (APC) is 0.8 and National Income is ₹ 4,000 crores, the value of savings will be ______.

विकल्प

• ₹ 100 crores

• ₹ 200 crores

• ₹ 800 crores

• ₹ 500 crores

Answer 1

If the value of Average Propensity to Consume (APC) is 0.8 and National Income is ₹ 4,000 crores, the value of savings will be ₹ 800 crores.

Explanation:

APC = `"C"/"Y"`

0.8 = `"C"/(₹ 4000)`

C = ₹ 3,200 crores

S = Y − C 

= ₹ 4,000 − ₹ 3,200

= ₹ 800 crores