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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
State the meaning of the following:
Autonomous Consumption
In equation C = a + by, the value of b lies between ______.
Final goods refer to those goods which are used either for ______ or for ______.
Consumption depends on ______
Aggregate Demand is not determined by which of the following.
Which of the following statements is true?
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?
"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.
At the break-even point level of incomes for the economy is ₹ 10,000 crores and if the people tends to save 20 per cent of their additional income, then calcualte the value of autonomous consumption.
Read the following statements carefully:
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?
