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If marginal propensity to save is …

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If marginal propensity to save is 20% and is constant at all level of income and the autonomous consumption is rs 100 crores ,construct consumption function of given hypothetical economy.

Posted by Aditya Somani 2 years ago

CBSE > Class 12 > Economics

2 answers

Arav Sharma 2 years ago

100+0.8y

1Thank You

Abhay Sharma 2 years ago

Autonomous Consumption=100 Cr. MPC=1-MPS MPC=1-0.2 MPC=0.8 C=—C+b(Y) C=100+0.8×Y C=100+0.8Y =Answer.

0Thank You

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