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If in an economy saving function …

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If in an economy saving function is given by S= - 50 + 0.2Y and y = 2000crores ; consumption expenditure for the economy woulb be Rs. 1650crores and the autonomous investment is Rs.50crores and the MPC is 0.8 . True or False ? Justify your answer with proper calculations .

    • Posted by Divyanshi Bucha 7 years ago

    CBSE > Class 12 > Economics
    • 1 answers

    Zeel Patel 7 years ago

    It is true because when we equate the equation we will get saving=350 and consumtion is 1650 when we add both we will get income ie. 2000 and mpc=1-mps so mpc =0.8

    2Thank You

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