Home
Class 12
ECONOMICS
Find the saving if autonomous consumptio...

Find the saving if autonomous consumptio is 75, MPC is 0.6 and level of income is 1000.

Text Solution

Verified by Experts

`S=-bar(C)+(1-b)Y`
=-75+(1-0.6)1000
`=-75+(4)/(10)xx1000=-75+400=325`
Promotional Banner

Topper's Solved these Questions

  • AGGREGATE DEMAND, AGGREGATE SUPPLY AND RELATED CONCEPTS

    RADHA BHUGANA|Exercise EXAMPLE|1 Videos

  • AGGREGATE DEMAND, AGGREGATE SUPPLY AND RELATED CONCEPTS

    RADHA BHUGANA|Exercise PRACTICAL APPLICATION|7 Videos

  • BALANCE OF PAYMENTS

    RADHA BHUGANA|Exercise VERY SHORT ANSWER TYPE QUESTIONS|5 Videos

Similar Questions

Explore conceptually related problems

Find savings of autonomous consumption is 60 and MPC=0.5 at 5000 level of income

Using the equation of consumption function: C = barc + b(Y), calculate consumption expenditure at the income level of ₹ 500 crores, if autonomous consumption is ₹ 40 crores and 40% of additional income is saved.

The consumption curve makes an intercept of ₹ 60 crores on the Y-axis. If MPC:MPS can be expressed as 1:3, then derive the saving and consumption function. Also determine the level of income, when saving becomes zero ?

The break-even point for an economy occurs at the income level of ₹ 500 crores If marginal propensity to consume is 0.6, determine: (i) Autonomous consumption, (ii) Saving function, (iii) Level of income when saving is ₹ 600 crores.

Calculate the value of Marginal Propensity to Consume (MPC), if in an economy, autonomous consumption is ₹ 500 crores, ex-ante investments are ₹ 4000crores and equilibrium level of Income of the economy is ₹ 18,000 crores.

The consumption function for and economy is given as: C = 200 + 0.8Y. (i) Determine the value of MPC and MPS, (ii) Autonomous Consumption, (iii) Derive the corresponding saving function, (iv) Calculate consumption at the income levels of ₹ 3,000 crores and ₹ 5,000 crores. (v) Determine the break-even level of income.