Calculate MPC from the following data about an economy which is in equ

1.	Calculate MPC from the following data about an economy which is in equilibrium National Income = 1500, Autonomous consumption expenditure = 300, Investment expenditure =100.
Answer» We know that Y = C + I By putting value we get 1500 = C + 100 , C = 1500 -100 = 1400 C = c + b Y by putting value 1400 = 300 + b 1500 1400 -300 / 1500 = b = 0.73 ∴ MPC = 0.73

Calculate MPC from the following data about an economy which is in equilibrium National Income = 1500, Autonomous consumption expenditure = 300, Investment expenditure =100.

Answer»

We know that Y = C + I By putting value

we get 1500 = C + 100 , C = 1500 -100 = 1400

C = c + b Y by putting value 1400 = 300 + b 1500

1400 -300 / 1500 = b = 0.73

∴ MPC = 0.73

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Calculate MPC from the following data about an economy which is in equilibrium National Income = 1500, Autonomous consumption expenditure = 300, Investment expenditure =100.

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