In an economy , an increase in investment leads to increase in national income which is times more then the increase in investment. Calculate marginal

Question

In an economy , an increase in investment leads to increase in national income which is times more then the increase in investment. Calculate marginal

In an economy , an increase in investment leads to increase in national income which is times more then the increase in investment. Calculate marginal propensity to consume.

Monjur Alahi

4 views

2025-01-04 04:42

1 Answers

Related Questions

An economy is in equilibrium. Calculate the Investment Expenditure from the following : National Income=800 Marginal Propensity to Save=0.3 Autonomous

2 Answers 6 Views

An economy is in equilibrium. Calculate national income from the following. Autonomous consumption=100 Marginal propensity to save = 0.2 Investment ex

2 Answers 4 Views

Calculate Marginal Propensity to Consume from the following data about an economy which is in equilibrium National Income=1500 Marginal propensity to

2 Answers 4 Views

Calculate Marginal Propensity to Consume from the following data about an economy which is in equilibrium National Income=2000 Marginal propensity to

2 Answers 4 Views

From the following data about an economy, calculate the equilbrium level of income: National Income=0.5 Marginal propensity to save=300 Investment exp

2 Answers 4 Views

An economy is in equilibrium. Calculate national income fromt the following: National Income=100 Marginal propensity to save=0.2 Investment expenditur

2 Answers 4 Views

An economy is in equilibrium. Calculate the investement Expenditure from the following: National Income=800 Marginal propensity to save=0.3 Investment

2 Answers 8 Views

An economy is in equilibrium. Calculate the Marginal Propensity to Save from the following: National Income=1000 Marginal propensity to save=100 Inves

2 Answers 4 Views

An economy is in equilibrium. Calculate Autonomous Consumption from the following. National Income=1250 Marginal propensity to save=0.2 Investment exp

2 Answers 4 Views

An economy is is equilibrium. From the following data, calculate the marginal propensity to save National income=10000 Marginal propensity tosave=5000

2 Answers 6 Views

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

Correct Answer - Marginal Propensity to Consume (MPC) `=0.75`
Let increase in Investment `Deltal`
Then, increase in national income `=Deltal+3Deltal=4Deltal`
Investment Multiplier (k) `=("Increase in income")/("Increase in Investment")=(4Deltal)/(Deltal)=4`
We know, k `=(1)/(1-MPC)`
`4=(1)/(1-MPC)`
`1-MPC=(1)/(4)`
Hence , MPC `=1-0.25=0.75`