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Calculate investment expenditure from the following data about an economy which is in equilibrium:
National income = 1000
Marginal propensity to save = 0.25
Autonomous consumption expenditure = 200
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Complete the following table:-
|Income (Rs)||Consumption expenditure (Rs)||Marginal propensity to save||Average propensity to save|
An economy is in equilibrium. Find investment expenditure:
National Income =1,000
Autonomous Consumption =100
Marginal propensity to consume =0.8
An economy is in equilibrium. Find marginal propensity to consume :
Expenditure = 100
Investment expenditure = 100
National Income = 2,000
Suppose marginal propensity to consume is 0.8. How much increase in investment is required to increase national income by Rs. 2000 crore? Calculate.
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