Question

Mpc being equal to 0.5 what will be ^c,income increases by rs100

Answer 1

Explanation:

The marginal propensity to consume (MPC) measures how consumer spending changes with a change in income. Using the figures above, the MPC is ΔC / ΔY = 300/600 = 0.5.

Consequently, national income will increase from OY to O ... If MPC and MPS are equal, value of multiplier is, ... Question 7. c = 50 + 0.5Y is the consumption function; where C is consumption expenditure and Y is national income and ... (ii) Marginal propensity to consume = 0.9 (iii) Investment = Rs 100

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Answer 2

Answer:

50

Explanation:

MPC=^C/^Y

MPC=0.5

^Y=100(Because it is change in income)

^C=?

Putting in formula:

0.5=^C/100

100*0.5=^C

50=^C

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