(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.

Explanation

(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