InterviewSolution
Saved Bookmarks
| 1. |
(i) The disposable income (Y) is ₹ 1200 crores and consumption expenditure ( C) is ₹ 800 crores. Calculate the APC. If saving is ₹ 500, out of an income of ₹ 5,000, how much is the APS ? (iii) If disposable income is ₹ 1,000 and consumption expenditure is ₹ 750, find out average propensity to save. (iv) If income is ₹ 100, calculate APC. (v) When incomes rises from ₹ 1,000 to ₹ 1,100, saving rise by ₹ 30. Find out MPS and MPC. |
|
Answer» (i) APC = `("Consumption (C)")/("Income (Y)")=(800)/(1,200)` = 0.67 (ii) APS = `("Saving (S)")/("Income (Y)")=(500)/(5,000)` = 0.10 (iii) APS = `("Consumption (C)")/("Income (Y)")`=`(500-100)/(500)` = 0.80 (v) MPS = `("Change in Saving"(DeltaS))/("Change in Income"(DeltaY))=(30)/(1,100-1,000)` = 0.30 |
|