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Distinguish between marginal propensity to consume and average propensity to consume. Give a numerical example.
Distinguish between Average Propensity to Consume and Marginal Propensity to consume using a numerical example.
Appears in these question papers
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.
Marginal propensity to consume + marginal propensity to save ......................... '
(zero \ one \ less \ more)
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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