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The value of mpc is 0.6 …

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The value of mpc is 0.6 and initial income in the economy is 100c. Prepare a schedule showing income ,consumption and saving .also show equibrium level of income by assuming automous investment oe80c

Posted by Gurveer Singh 7 years, 8 months ago

CBSE > Class 12 > Economics

1 answers

Somya Parashar 7 years, 8 months ago

The initial income.. Is 100c... We know the.. Autonomous consumption is never be zero.. But in this question we can assume that.. Autonomous cunsumption is 0 n solve the equation.. B denoted as MPC which is 0.6 C = autonomous consumption + b(y) C = 0+0.6(100) C = 0+60 C= 60 So at 100 level of income.. 60 consumption is there And make the table schedule... And explain briefly

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