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CBSE 2014 Class 12 Economics Delhi Set-2
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Question : 3 of 4
Marks:
+1,
-0
Calculate autonomous consumption expenditure from the following data about an economy which is in equilibrium.National income Marginal propensity to save Investment expenditure
Solution:
We have, where, is investment expenditure which is given as 100. is income which is given as 1200 and, here, is autonomous consumption expenditure is marginal propensity to consumer, - marginal propensity to consume (mps) so, . Thus, putting the values in the equation, or, or, . Thus, autonomous consumption expenditure is 140 .
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