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.
Option 1: 200, 600
Option 2: 0.10, 650
Option 3: 0.90, 650
Option 4: None of the above.
Correct Answer: 0.90, 650
Solution : C= 200+0.90Y
MPC= 0.90
C= 200+0.90(500)
C= 650
Hence, Option C is correct.
Question : What is the value of autonomous consumption from the following consumption function-
C=120+0.85Y and also determine consumption at Y=520.
Question : On the basis of consumption function: C=180+0.6Y. Determine consumption at the income level of Rs.500.
Question : Using the consumption function, Calculate saving at income level of 2500 crore, if autonomous consumption is 200 crore and 60% of additional income is consumed.
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?
Question : If MPC is four times MPS and consumption at zero level of income is 50 crore derive the consumption function.
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