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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.
  • 2 answers

Arav Sharma 1 year, 5 months ago

100+0.8y

Abhay Sharma 1 year, 5 months 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.
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