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CBSE 2016 Class 12 Economics Outside Delhi Set-2

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Question : 2 of 5
Marks: +1, -0
An economy is in equilibrium. Find investment expenditure:
National income =1200=1200
Autonomous consumption expenditure =150=150
Marginal Propensity to consume =0.8=0.8
Solution:  
Y  =C‾+MPC(Y)+IY\;=\overline{C}+MPC(Y)+I
1200  =150+(0.8×1200)+11200\;=150+(0.8 \times 1200)+1
I  =1200−150−960I\;=1200-150-960
  =90\;=90
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