An economy is in equilibrium. Find Marginal Propensity to Consume :
An economy is in equilibrium. Find Marginal Propensity to Consume :
Autonomous Consumption Expenditure = 100
Investment Expenditure = 100
National Income = 2,000
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Y = C bar + MPC(Y) + I
2000 = 100 + MPC(2000) + 100
MPC = (200 - 100 - 100)/200 = 200/1800 = 0.9
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