question_answer

Complete the following table.

Income (Rs.)	Savings (Rs.)	MPC	APC
0	-20	-	-
50	-10	-	-
100	0	-	-
150	30	-	-
200	60	-	-

Or As a result of increase in investment by Rs. 60 crore, National Income rises by Rs. 240 crore. Calculate Marginal Propensity to Consume (MPC).

Answer:

MPC = 0.0, 0.8, 0.4, 0.4; APC =1.2, 1.0, 0.8, 0.7