Question : If MPC is four times MPS and consumption at zero level of income is 50 crore derive the consumption function.
Option 1: C=50+0.2Y
Option 2: C=50+0.8Y
Option 3: C=50-0.2Y
Option 4: C=50-0.8Y
Correct Answer: C=50+0.8Y
Solution : MPC:MPS= 4:1 or
MPC:MPS= 0.8:0.2, since MPC+MPS=1
C=50+0.8Y
Hence, Option B is correct.
Question : If MPC is four times MPS and consumption at zero level of income is 80 crore. Derive the saving function.
Question : Determine the value of MPS & MPC from the following consumption function, C= 75+0.8Y.
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 : Which of the following statements are correct?
Question : Production function explains the relationship between:
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