shaalaa.com
S

Solution - Consumption Function and Propensity to Save

Account
User


Login
Register


      Forgot password?
Share
Notifications

View all notifications
Books Shortlist
Your shortlist is empty

Question

An economy is in equilibrium. Find investment expenditure: 

National Income =1,000

Autonomous Consumption =100

Marginal propensity to consume =0.8

Solution

You need to to view the solution
Is there an error in this question or solution?

Similar questions VIEW ALL

Suppose marginal propensity to consume is 0.8. How much increase in investment is required to increase national income by Rs. 2000 crore? Calculate.

view solution

Define marginal propensity to consume

view solution

Complete the following table:-

Income (Rs)Consumption expenditure (Rs)Marginal propensity to saveAverage propensity to save
080  
1001400.4.......
200..............0
.......240........0.20
.........2600.80.35
view solution

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

view solution

Distinguish between marginal propensity to consume and average propensity to consume. Give a numerical example.

view solution
Solution for concept: Consumption Function and Propensity to Save. For the courses 12th CBSE (Arts), 12th CBSE (Commerce), 12th CBSE (Science)
S