Calculate MPC from the following date about an economy which is in equilibrium : `{:("National income",=2","000),("Autonompus consumption expenditure ",=200),("Investment expenditure ",=100):}`

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

1.	Calculate MPC from the following date about an economy which is in equilibrium : `{:("National income",=2","000),("Autonompus consumption expenditure ",=200),("Investment expenditure ",=100):}`
Answer» `Y=C+I` `Y=(barC+by)+I` ` Y=barC+MPC(2,000)+100` `MPC=(1700)/(2000)=0.85` since for survival , there has to be autompous consumption , therefore ,`barC` is grater than zero `(barC gt 0). ` According to Keynes , as income increases, it is human tendency to increase consumption `(0ltb)` but increase in consumption is not as much as increase is not as much as increase in income i,e., b is less than 1`(blt1)` .,thus we can show the interrelationship in this this way .