Question : Determine the value of MPS & MPC from the following consumption function, C= 75+0.8Y.
Option 1: 0.4, 0.6
Option 2: 0.2, 0.8
Option 3: 0.5,0.5
Option 4: 0.6,0.4
Correct Answer: 0.2, 0.8
Solution : MPS= 0.2, MPC= 0.8 Hence, Option B is correct.
Question : If MPC is four times MPS and consumption at zero level of income is 50 crore derive the consumption function.
Question : What is the value of MPS in the following savings function S= -100+0.2Y and also determine saving at the Y=1000.
Question : If MPC is four times MPS and consumption at zero level of income is 80 crore. Derive the saving function.
Question : Which of the following statements are correct?
Question : This function of money has simplified the borrowing and lending operations.
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