CBSE 2014 Class 12 Economics Outside Delhi Set-2
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Question : 3 of 4
Marks:
+1,
-0
Calculate investment expenditure from the following data about an economy which is in equilibrium.
National Income
Marginal propensity to save
Autonomous consumption expenditure
National Income
Marginal propensity to save
Autonomous consumption expenditure
Solution:
Given,
National Income
Marginal propensity to save (MPS)
Autonomous consumption expenditure
MPC MPS
As we know in equilibrium,
Since,
We
Therefore, investment expenditure is .
National Income
Marginal propensity to save (MPS)
Autonomous consumption expenditure
MPC MPS
As we know in equilibrium,
Since,
We
Therefore, investment expenditure is .
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