Economy, asked by kashvigupta20, 9 months ago

If MPS=10% and is constant at all levels of income, and the autonomous consumption is ₹200 crore, construct consumption function of the given hypothetical economy.

Answers

Answered by devil9275
0

MPS=10% and is constant at all levels of income, and the autonomous consumption is ₹200 crore, construct consumption function of the given hypothetical economy

Answered by priya3590sharma
2

Explanation:

MPS= 10% or 0.1

Autonomous consumption is Rs. 200 crores

C = Autonomous consumption +MPC(Y)

MPC=1-MPS

MPC=1-0.1=0.9

C = 200+ 0.9Y

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