| Find consumption expenditure from the followings: | |
| Items | Amount |
| Autonomous consumption | Rs 100 |
| Marginal propensity to consume | 0.70 |
| National Income | Rs 1,000 |
Answer:
Given: C = Rs. 100 MPC (b) = 0.70 Y = Rs. 1,000 To Calculate: Consumption Expenditure Consumption Expenditure (C) \[=~\overline{C}-bY=100+0.70\times ~1,000=Rs.\text{ }800\]
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