Question : What is the value of autonomous consumption from the following consumption function-
C=120+0.85Y and also determine consumption at Y=520.
Option 1: 200, 650
Option 2: 0.85, 650
Option 3: 0.15, 562
Option 4: 120, 562
Correct Answer: 120, 562
Solution : C=120+0.85Y
Autonomous consumption- 120
b/MPC= 0.85
C=120+0.85(520)
C= 562
Hence, Option D is correct.
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 : 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 : 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=180+0.6Y. Determine consumption at the income level of Rs.500.
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile