Find national income from the following :
Autonomous consumption
= Rs.100
Marginal propensity to consume
= 0.80
Investment
= Rs.50

Explanation

We know: National Income (Y) `=Consumption ( C) +` Investment (I)
Consumption Function is given as : C `= overline c +` b (Y)
So, Y `= overline c + b(Y) +l`
Putting the values of `overlinec `, b and l, we get:
Y`= 100 + 08Y +50`
`0.2Y =150`
National Income (Y) `=Rs. 750`