Calculate investment expenditure from the following data about an econ

1.	Calculate investment expenditure from the following data about an economy which is in equilibrium:National Income = 1000, MPS = 0.25, c = 200
Answer» We know that C = c + bY , by putting value C = 200 + 0.75 x 1000 = 950 We also know that Y = C + I 1000 = 950 + I ∴ I = 50.

Calculate investment expenditure from the following data about an economy which is in equilibrium:National Income = 1000, MPS = 0.25, c = 200

Answer»

We know that C = c + bY , by putting value

C = 200 + 0.75 x 1000 = 950

We also know that Y = C + I

1000 = 950 + I

∴ I = 50.

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Calculate investment expenditure from the following data about an economy which is in equilibrium:National Income = 1000, MPS = 0.25, c = 200

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