Question

calculate the value of marginal propensity of consume (MPC), if in a economy autonomous consumption is 500 crores ? ex ante investment are 4000 crores and equilibrium level of income of the economy is 18000 crores ?​

Answer 1

Answer:

Explanation:

Y = C+ I

18000 = C + 4000

C = 18000-4000

C= 14000

C = c + mpc*Y

14000 = 500+mpc*18000

mpc = 14000-500/18000

Mpc = 0.75