Question

If the value of APC is 0.8 and National Income is ₹4000 crores, the amount of saving will be ______.

Options

• ₹100 crore

• ₹200 crores

• ₹800 crores

• ₹500 crores

Answer 1

If the value of APC is 0.8 and National Income is ₹4000 crores, the amount of saving will be ₹ 800 crores.

Explanation:

Since APC + APS = 1

APS = 1 − APC

1 − 0.8

APS = 0.2

Then,

S = APS × Y

= 0.2 × 4000

= ₹ 800 crore