Economy, asked by empiresakib, 9 months ago

MPC being equal to 0.5, what will be, if income increases by Rs. 100?​

Answers

Answered by Anonymous
6

Answer:

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

Answered by mahajan789
4

MPC stands for Marginal Propensity to Consume.

The percentage of a raise that is spent on consumption rather than saving is known as marginal propensity to consume (MPC).

Given, \Delta Y=100

We know, MPC=\frac{\Delta C}{\Delta Y}=0.5\\\Rightarrow \Delta C=0.5\times 100=50

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