1.

Calculate marginal propensity to consume (MPC) from the following data about an economy which is in equilibrium : National income 2,000 Autonomous consumption expendituure 200 Investment expenditure 100

Answer» `Y=C+I`
` Y= (barC+By)+I`
`2,000=200+MPC(2,000)+100`
`2,000 MPC=2,000-200-100=1,700`
`MPC = 1,700 //2,000`
`=17//20`
`=0.85`


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