Calculate autonomous consumption expenditure from the following data about in an economy which is in equilibiru: National income=500, MPS=0.3, Investm

Question

Calculate autonomous consumption expenditure from the following data about in an economy which is in equilibiru: National income=500, MPS=0.3, Investm

Calculate autonomous consumption expenditure from the following data about in an economy which is in equilibiru: National income=500, MPS=0.3, Investment expenditure=100.

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

`S=-bar(C )+(1-b)Y`
`100=-bar(C )+(0.3)500`
`100=-bar(C )+150`
`-50=-bar(C ) or bar(C )=50`
Hence, Autonomous Consumption expenditure =50

4 views Answered 2023-02-05 15:29