An economy is in equilibrium. Find Marginal propensity to consume from the following:
National Income=2000
Marginal propensity to save=400
Investment expenditure =200
Given Consumption function is,
C=100+0.8 Y
Autonomous investments = 500 crores
We know, at equilibrium level
Y = C+I
Y = 100+0.8 Y+500
Y-0.8Y = 600
0.2...
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