Question : Consider the given consumption function of country X and answer the following question.
C = 100 + 0.8Y
What is the value of autonomous consumption (A) and marginal propensity to consume (MPC) in the given equation?
Option 1: A = 0.8, MPC = 100
Option 2: A = 100, MPC = 80
Option 3: A = 80, MPC = 0.10
Option 4: A = 100, MPC = 0.8
New: SSC CHSL Tier 2 answer key released | SSC CHSL 2024 Notification PDF
Recommended: How to crack SSC CHSL | SSC CHSL exam guide
Don't Miss: Month-wise Current Affairs | Upcoming government exams
New: Unlock 10% OFF on PTE Academic. Use Code: 'C360SPL10'
Correct Answer: A = 100, MPC = 0.8
Solution : The correct option is A = 100, MPC = 0.8 .
In the consumption function C = 100 + 0.8Y, autonomous consumption (A) is the constant term, which is 100. The marginal propensity to consume (MPC) is the coefficient of the income term (Y), which is 0.8. This represents the proportion of additional income consumed, indicating a high consumption propensity.
Candidates can download this e-book to give a boost to thier preparation.
Result | Eligibility | Application | Admit Card | Answer Key | Preparation Tips | Cutoff
Question : The value of $(x^{b+c})^{b–c}(x^{c+a})^{c–a}(x^{a+b})^{a–b}$, where $(x\neq 0)$ is:
Question : Collective consumption means
Question : In which of the following ways is the aggregate demand function related to the consumption function? I. They have the same slope C. II. The aggregate demand function is parallel to the consumption function.
Question : If $a+b+c=9$ (where $a,b,c$ are real numbers), the minimum value of $a^2+b^2+c^2$ is:
Question : A house was sold for Rs. $y$ by giving a discount of $x$% then the list price was:
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile