Calculate consumption expenditure at the income level of Rs.1000 crore

1.	Calculate consumption expenditure at the income level of Rs.1000 crores, if autonomous consumption is Rs. 80 crores. And 20% of additional income is saved.
Answer» MPS = 0.2 SO , MPC =0.8 C=c + bY (c = autonomous consumption) C= 80+ 0.8 * 1000=Rs. 880 crores

Calculate consumption expenditure at the income level of Rs.1000 crores, if autonomous consumption is Rs. 80 crores. And 20% of additional income is saved.

Answer»

MPS = 0.2 SO , MPC =0.8

C=c + bY (c = autonomous consumption)

C= 80+ 0.8 * 1000=Rs. 880 crores

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Calculate consumption expenditure at the income level of Rs.1000 crores, if autonomous consumption is Rs. 80 crores. And 20% of additional income is saved.

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