In an economy, the ratio of MPC and MPS is 7:3. How much increase in i

1.	In an economy, the ratio of MPC and MPS is 7:3. How much increase in income will increase the consumption by Rs 350 crores? OR In an economy, C = 300 + 0.5 Y and investment is 600. What will be the equilibrium level of income and consumption?
Answer» In an economy, the ratio of MPC and MPS is 7:3. How much increase in income will increase the consumption by Rs 350 crores? OR In an economy, C = 300 + 0.5 Y and investment is 600. What will be the equilibrium level of income and consumption?

In an economy, the ratio of MPC and MPS is 7:3. How much increase in income will increase the consumption by Rs 350 crores? OR In an economy, C = 300 + 0.5 Y and investment is 600. What will be the equilibrium level of income and consumption?

Answer»

In an economy, the ratio of MPC and MPS is 7:3. How much increase in income will increase the consumption by Rs 350 crores?

In an economy, C = 300 + 0.5 Y and investment is 600. What will be the equilibrium level of income and consumption?