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Question
Suppose the value of Average Propensity to Consume (APC) is 0.8 and National Income is ₹ 4,000 crores; the value of saving would be ₹ ______ crores.
Options
100
200
500
800
MCQ
Fill in the Blanks
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Solution
Suppose the value of Average Propensity to Consume (APC) is 0.8 and National Income is ₹ 4,000 crores; the value of saving would be ₹ 800 crores.
Explanation:
APC = `"C"/"Y"`
0.8 = `"C"/(₹4000)`
C = ₹ 3,200 crores
S = Y − C
= ₹ 4,000 − ₹ 3,200
= ₹ 800 crores
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