Home
Class 12
ECONOMICS
If the saving function is S = -20 + 0.3Y...

If the saving function is S = -20 + 0.3Y, then what will be the value of MPC ?

Text Solution

Verified by Experts

0.3 indicates that MPS = 0.3. So, MPC = 1-MPS = 1-0.30= 0.70
Promotional Banner

Topper's Solved these Questions

  • AGGREGATE DEMAND AND RELATED CONCEPTS

    SANDEEP GARG|Exercise SHORT ANSWER TYPE QUESTIONS|23 Videos

  • AGGREGATE DEMAND AND RELATED CONCEPTS

    SANDEEP GARG|Exercise LONG ANSWER TYPE QUESTIONS|11 Videos

  • AGGREGATE DEMAND AND RELATED CONCEPTS

    SANDEEP GARG|Exercise REVISION EXERCISE (MULTIPLE CHOICE QUESTIONS)|19 Videos

  • FOREIGN EXCHANGE RATE

    SANDEEP GARG|Exercise REVISION EXERCISE|12 Videos

  • BALANCE OF PAYMENTS

    SANDEEP GARG|Exercise LONG ANSWER TYPE QUESTIONS|6 Videos

Similar Questions

Explore conceptually related problems

If x+y=52 and x-y=20 , then what is the value of x:y ?

If a consumption function of a hypothetical economy is given as: C = 100 + 0.6 Y, then (i) What will be the values of marginal propensity to consume and marginal propensity to save for the economy ? (ii) Write the corresponding saving function.

If MPC is 0.75, what will be the MPS ?

If consumption function for economy is given as: C=120+0.9Y then what is the value of multiplier?

If the value of MPS is 0.3, what is value of MPC?

With the help of saving function: S = -20+ 0.3 (Y), calculate consumption expenditure at the income level of ₹1,000 crores.

SANDEEP GARG-AGGREGATE DEMAND AND RELATED CONCEPTS -VERY SHORT ANSWER TYPE QUESTIONS
  1. What is average propensity to save ? Give the formula for its measurem...

    Text Solution

    |

  2. Can the value of average propensity to save be negative ? If yes, whe...

    Text Solution

    |

  3. Define marginal propensity to save.

    Text Solution

    |

  4. What can be the maximum value of marginal propensity to save ?

    Text Solution

    |

  5. What is the relationship between APC and APS ?

    Text Solution

    |

  6. What is the relationship between marginal propensity to save and margi...

    Text Solution

    |

  7. If the value of average propensity to consume is given as 0.75, the va...

    Text Solution

    |

  8. If MPC is 0.75, what will be the MPS ?

    Text Solution

    |

  9. How much is the marginal propensity to consume in an economy in which ...

    Text Solution

    |

  10. If the saving function is S = -20 + 0.3Y, then what will be the value ...

    Text Solution

    |

  11. Give the meaning of autonomous consumption.

    Text Solution

    |

  12. Out of induced investment and autonomousn investment, which one is inf...

    Text Solution

    |

  13. Will a firm invest, if its marginal efficiency of investment is 12% an...

    Text Solution

    |

  14. Give the meaning of ex-ante saving.

    Text Solution

    |

  15. Give the meaning of ex-ante investment.

    Text Solution

    |

  16. What do you understand by ex-post saving and ex-post investment ?

    Text Solution

    |

  17. Will ex-ante saving always be equal to the ex-ante investment ?

    Text Solution

    |

  18. Give the meaning of full employment.

    Text Solution

    |

  19. Give the meaning of involuntary unemployment.

    Text Solution

    |

  20. Why does cosumption curve not start from the origin.

    Text Solution

    |