Question

Calculate Investment Expenditure from the following data about an economy which is in equilibrium : National income = Rs 1000 , MPS= 0.25, Autonomous Consumption = Rs 200

a. 90.

b. 50

c. 60

d. 70

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Answer 1

Answer:

b. 50

Explanation:

National income = 1000. Marginal propensity to save = 0.25. Autonomous consumption expenditure = 200. Thus investment expenditure is 50.

Answer 2

Answer:

option b is the right answer