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CBSE 2020 Class 12 Economics Outside Delhi Set 3

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Question : 1 of 7
Marks: +1, -0
SECTION-A
(Macro-economics)
If the value of Average Propensity to Save (APS) is 0.2 and National Income is ₹4,000\text{₹}4,000 crore, then consumption will be
(Choose the correct alternative.)
Solution:  
APS=SavingIncome\text{APS} = \frac{\text{Saving}}{\text{Income}}
0.2=Saving4,0000.2 = \frac{\text{Saving}}{4,000}
Saving =0.2×4,000=₹800=0.2 \times 4,000 = \text{₹}800
Consumption == Income - Saving
C=Y−SC = Y - S
=4,000−800=4,000-800
C=₹3,200C = \text{₹}3,200
(b) ₹3,200\text{₹}3,200 crores
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