CBSE 2016 Class 12 Economics Outside Delhi Set-2

Question : 2 of 5

Marks: +1, -0

An economy is in equilibrium. Find investment expenditure:
National income

=1200

Autonomous consumption expenditure

=150

Marginal Propensity to consume

=0.8

Solution:

{\Y}\;=\ov{ {\C}}+ {\MPC}( {\Y})+ {\I}

1200\;=150+(0.8 × 1200)+1

{\I}\;=1200-150-960

\;=90

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