In an economy, every time income rises, 75% of the rise in income is spent on consumption. Now suppose in the same economy investment rises by Calcula

Monjur Alahi

In an economy, every time income rises, 75% of the rise in income is spent on consumption. Now suppose in the same economy investment rises by
Calculate the following :
(i) Change in income
(ii) Change in saving


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Salim Ahmed Kawsar

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3000 crore, 750 crore

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An economy is in equilibrium. From the following data about an economy investment expenditure. (i) Income=1000 (ii) Marginal propensity to consumption

Y=C+I `Y=bar(C)+bY+I` `Y=bar(C)+bY+I` `10000=100+9000+I` I=10000-9100 I=900

2 Answers 1 views
An economy is in equilibrium. From the following data, calculate MPS. (i) Income=10,000 (ii) Autonomous consumption =500 (iii) Consumption expenditure

`C=barC+bY` 8000=500+b(10,000) b(10,000)=7500 `b=(7500)/(10,000)=0.75` or MPC=0.75 We know that MPC + MPS =1 0.75+MPS=1 MPS=1-0.75

2 Answers 1 views
In an economy S= - 50+50Y is the saving function and investment expenditure is ₹ 7000. Calculate : (i) Equilibrium level of income (ii) Consumption ex

(i) At equilibrium level of income : S =I, I = 7000 , S = -50 + 0.5 Y` `7000- = - 50 +0.5Y` 7050 = 0.5Y Hence, `Y =...

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In an economy with every increase in income 15% of the increased income is saved. Suppose a fresh investment of 600 crore takes place in the economy,

4000 crore, 3400 crore

2 Answers 2 views
From the data given below about ·an economy calculate: (a) Investment-expenditure (b) Consumption expenditure (i) Equilibrium level of income 5000 (ii

Correct Answer - 25002500

2 Answers 2 views
In an economy C=200 +0.75Y is the consumption function where C is consumption expenditure national income. Investment expenditure is 4000. Calculate e

Correct Answer - `16800,12800`

2 Answers 1 views
C= 100 + 0.4Y is the consumption function of an economy where C is consumption expenditure and Y is National Income. Investment expenditure is 1100. C

Correct Answer - 2000900

2 Answers 2 views
In an economy `C=500+0.9 Y` and `I=1,000` (where `C=` consumption, `Y=` income, `I=` investment). Calculate the following : (i) Equilibrium level of i

given `Y=C+I` (i) `Y=500+0.9 Y+1000` `Y=1500+0.9 Y` or `0.1 Y=1,500` `Y=` Rs. `15,000` (ii) `C=Y-I=15,000-1,000=` Rs. `14,000`.

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In an economy, every time the income rises, `75` percent of the rise in income is spent on consumption. Now suppose in the same economy investment ris

(i) `MPC=0.75, :. MPS=0.25` `:. K=1/(1-MPC)=1/(1-0.75)=4` `:. DeltaY=K. Delta I=4xx750` crore = Rs. `3,000` crore `133` (ii) `DeltaS=DeltaY-DeltaC=3,000-(0.75xx3,000)` `=3000-2250` crore = Rs. `750` crore.

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C=100+0.4 Y is the consumption Function of an economy where C is consumption expenditure and Y is National income , Inestment expenditure is 1,100 cal

Correct Answer - {(Rs. 2000;(ii) Rs.900)} {(Rs.2000;(ii) Rs.900)} {(Rs.4100;(ii) Rs.2100)}

2 Answers 1 views
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