CBSE 2017 Class 12 Economics Outside Delhi Set-1
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Question : 12 of 18
Marks:
+1,
-0
An economy is in equilibrium. From the following data, calculate the marginal propensity to save :
(a) Income
(b) Autonomous consumption
(c) Consumption expenditure
(a) Income
(b) Autonomous consumption
(c) Consumption expenditure
Solution:
Applying the equation :
Where, Consumption expenditure
Autonomous consumption (500)
MPC (marginal propensity to consume)
Now,
Hence, the value of MPS
Where, Consumption expenditure
Autonomous consumption (500)
MPC (marginal propensity to consume)
Now,
Hence, the value of MPS
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