CBSE 2014 Class 12 Economics Outside Delhi Set-1
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Question : 14 of 19
Marks:
+1,
-0
Calculate Marginal Propensity to Consume from the following data about an economy which is in equilibrium:
National income
Autonomous consumption expenditure
Investment expenditure
National income
Autonomous consumption expenditure
Investment expenditure
Solution:
Given,
National Income
Autonomous consumption expenditure
Investment expenditure
As we know in equilibrium,
Since,
We get
Therefore, marginal propensity to consume is 0.85 .
National Income
Autonomous consumption expenditure
Investment expenditure
As we know in equilibrium,
Since,
We get
Therefore, marginal propensity to consume is 0.85 .
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