Question

Suppose the value of Average Propensity to Consume (APC) is 0.8 and National Income is ₹ 4,000 crores; the value of saving would be ₹ ______ crores.

विकल्प

• 100 

• 200

• 500

• 800

Answer 1

Suppose the value of Average Propensity to Consume (APC) is 0.8 and National Income is ₹ 4,000 crores; the value of saving would be ₹ 800 crores.

Explanation:

APC = `"C"/"Y"`

0.8 = `"C"/(₹4000)`

C = ₹ 3,200 crores

S = Y − C 

= ₹ 4,000 − ₹ 3,200

= ₹ 800 crores