Question

In an economy AD function equals to Rs160crore +0.8Y autonomous consumption is equal to100 crore. value for autonomous investment and MPS is in the economy ____and ____ respectively .​

Answer 1

Answer:

autonomous investment = -100

MPS = 0.2

Explanation:

In an economy

$\frac{}{c} = \frac{}{s}$

autonomous investment = -100

MPC+ MPS =1

MPC=0.8

MPS = 1 - 0.8

MPS = 0.2

Answer 2

Calculation of investment and MPS

Explanation:

1. AD= C+I

where C is consumption and I is investment

C=α +βY

where α is autonomous consumption, β is MPC and Y is income

In the given equation :

AD= 160 +0.8Y

where α= 100

So AD=  (100 +0.8Y) +60

So investment = 60

2. MPC+ MPS = 1

Given MPC= 0.8

So= 0.8+ MPS= 1

So MPS= 1-0.8

MPS= 0.2

Learn more:

meaning of MPC and MPS

https://brainly.in/question/15171083