Given that mational income is Rs. 80 crore and consumption expenditure is Rs. 64 crore find out average propensity to save (Aps) . When income rises to Rs. 100 crore and consumption expenditure to Rs. 78 crore , what will be APC and MPC?

Given that mational income is Rs. 80 crore and consumption expenditure

1.	Given that mational income is Rs. 80 crore and consumption expenditure is Rs. 64 crore find out average propensity to save (Aps) . When income rises to Rs. 100 crore and consumption expenditure to Rs. 78 crore , what will be APC and MPC?
Answer» (i) `APS =(s)/(Y) =(16=(80-64))/(80)=(1)/(5) =0.2` (ii) when income rises to 100 crore and consumption to 78 crore , then `Delta Y =20` `(=100-80) and Delta C=14(=78-64)` `APC=( C)/(Y) =(78)/(100)=0.78` `MPC =(delta C) /(deltaY) =(14)/(20)=(7)/(10)=0.70`