From the following data calculate investment expenditure :

Question

From the following data calculate investment expenditure :

From the following data calculate investment expenditure :

(i) Marginal propensity to save = 0.2

(ii) Equilibrium level of income = 22500

(iii) Autonomous consumption = 500

Monjur Alahi

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2025-01-04 04:42

1 Answers

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Salim Ahmed Kawsar · Accepted Answer · 2023-02-05T15:29:48+06:00

Salim Ahmed Kawsar

Y = C + (1 - M_PS)Y + I

22,500 = 500 + (1 - 0.2) 22,500 + I

I = 22,500 - 500 - 18,000 = 4000

(calculation based on I = Y - C is also correct )

4 views Answered 2023-02-05 15:29