Find national income from the following: |
Autonomous consumption =Rs 100 |
Marginal propensity to consume =0.80 |
Investment =Rs. 50 |
Answer:
C = Rs. 100 MFC (b) = 0.80 I = Rs. 50 At Equilibrium, \[Y=C+I\] or, \[Y=\overline{C}+bY+I\] substituting the values, \[Y=100+0.8V+50\] or, 0.2 Y = 150 or, Y = Rs. 750 \[\therefore \] National Income = Rs. 750
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