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प्रश्न
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?
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उत्तर
| (Y) (in crores) |
(S) (in crores) |
ΔS (in crores) |
ΔY (in crores) |
| 0 | -20 | - | - |
| 50 | -10 | - 10 - (20) = 10 | 50 - 0 = 50 |
| 100 | 0 | 0 - (-10) = 10 | 100 - 50 = 50 |
| 150 | 30 | 30 - 0 = 30 | 150 - 100 - 50 |
| 200 | 60 | 60 - 30 = 30 | 200 - 150 = 50 |
(a) MPS at 150 = `"ΔS"/"ΔY"`
= `30/50`
= 0.6
(b) Autonomous consumption (consumption at 0 level of income) Y- S =
= 0 - (-20)
= 20 crores.
संबंधित प्रश्न
What is marginal propensity to consume?
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:
"In an economy, the autonomous consumption is ₹ 100 and Marginal Propensity to Consume (MPC) is 0.6. If the equilibrium level of Income is 2,000, then the autonomous investment is ₹ 300." Justify the statement with valid calculation.
Read the following statements carefully:
Statement 1: The induced consumption shows, the direct relation between consumption and income.
Statement 2: With a certain increase in income, induced consumption also increases.
In the light of the given statements, choose the correct alternative from the following:
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:
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?
What does the consumption function show?
How does the consumption curve begin and move as income changes?
Which expression represents induced consumption in the consumption function?
Which formula correctly defines Marginal Propensity to Consume (MPC)?
Which formula correctly defines Marginal Propensity to Save (MPS)?
If \[MPC=0.8\], what is MPS?
Which equation is equivalent to \[MPC+MPS=1\]?
What does \[APS=\frac{S}{Y}\] measure?
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?
