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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 ______.
पर्याय
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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संबंधित प्रश्न
Given the following data, find the missing value of 'Government Final Consumption Expenditure' and 'Mixed Income of Self Employed'.
| S.No. | Particulars | Amount (In ₹ crores) |
| (i) | National Income | 71,000 |
| (ii) | Gross Domestic Capital Formation | 10,000 |
| (iii) | Government Final Consumption Expenditure | ? |
| (iv) | Mixed Income of Self Employed | ? |
| (v) | Net Factor Income from Abroad | 1,000 |
| (vi) | Net Indirect Taxes | 2,000 |
| (vii) | Profits | 1,200 |
| (viii) | Wages & Salaries | 15,000 |
| (ix) | Net Exports | 5,000 |
| (x) | Private Final Consumption Expenditure | 40,000 |
| (xi) | Consumption of Fixed Capital | 3,000 |
| (xii) | Operating Surplus | 30,000 |
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