Question : On the basis of consumption function: C=180+0.6Y. Determine consumption at the income level of Rs.500.
Option 1: 500
Option 2: 480
Option 3: 300
Option 4: 600
Correct Answer: 480
Solution :
Question : On the basis of consumption function: C=20+0.6Y. Determine consumption at the income level of Rs.600.
Question : On the basis of consumption function: C=120+0.6Y. Determine saving at the income level of Rs.800.
Question : On the basis of consumption function: C=100+0.8Y. Determine saving at the income level of Rs.800.
Question : What is the value of MPC in the following consumption function
C= 200+0.90Y and also determinne consumption at income level of 500.
Question : The consumption function is given by C = 800 + 0.6Y. If disposable income is INR 5,000, what is the level of consumption?
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