Calculate MPC from the following data about an economy which is in equilibrium: National income=2000, Investment expenditure=100, Autonomous consumption expenditure=200


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`Y=C+I`
`Y=(bar(C )+By)+I`
`b(2000)=1700 [At equiilbrium S=I=100 2. 1-b=MPS=0.3`
`b(1700)/(2000)=0.85`
Hence, MPC=0.85

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