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प्रश्न
In an economy, the value of Marginal Propensity to Save (MPS) is 0.25, what will be the value of increase in income, if investments increased by ₹ 200 crores?
विकल्प
₹ 200 crores
₹ 150 crores
₹ 1,000 crores
₹ 800 crores
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उत्तर
₹ 800 crores
Explanation:
Given: Increase in Investment = ΔI = 200 crore
MPS = 0.25
To Find: Increase in Income = ΔY =?
Here,
MPC + MPS = 1
MPC + 0.25 = 1
MPC = 1 - 0.25 = 0.75
Investment Multiplier = `k = 1/(1 - "MPC")`
=`1/(1 - 0.75) = 1/ (0.25)`
= 4
Now, `k = "ΔY"/"ΔI"`
4 = `"ΔY"/200`
`4xx200` = ΔY
ΔY = ₹ 800 crore
संबंधित प्रश्न
State the meaning of the following:
Autonomous Consumption
Which of the following statements is true?
Read the following statements carefully:
Statement 1: The consumption curve is an upward sloping straight line curve due to the direct relationship between income and consumption and the assumption of constant Marginal Propensity to Consume.
Statement 2: Aggregate Demand curve and Consumption curve are parallel to each other.
In the light of the given statements, choose the correct alternative from the following:
On the basis of following schedule, answer the given questions:
| Income (in ₹ crores) |
Savings (in ₹ crores) |
| 0 | -20 |
| 50 | -10 |
| 100 | 0 |
| 150 | 30 |
| 200 | 60 |
- Calculate Marginal Propensity to Save (MPS) at ₹ 150 crores level of income.
- What is the value of Autonomous Consumption?
Statement 1: Consumption function assumes that, consumption changes at a constant rate as income changes.
Statement 2: Autonomous consumption is the ratio of total consumption (C) to total income (Y).
In light of the given statements, choose the correct alternative from the following:
Which formula represents the consumption function?
How does the consumption curve begin and move as income changes?
When income rises by ₹1, induced consumption rises by which amount?
Which formula correctly defines Marginal Propensity to Consume (MPC)?
Within which range does the value of MPC always lie?
If \[MPC=0.8\], what is MPS?
What does \[APC=\frac{C}{Y}\] measure?
What does the 45° line represent?
What is saving at a point where income equals consumption on the 45° line?
What does it mean when the consumption curve is below the 45° line?
What does it mean when the consumption curve is above the 45° line?
For the consumption function \[C=100+0.8Y\], what is autonomous consumption?
