Question

Q17 If MPS is 0.6 what will be
AS when income increases by
Rs. 50?

​

Answer 1

Explanation:

Rs 50 crore MPS = 0.2. So, MPC(b ) = 1 ... Consequently, national income will increase from OY to O. { Y }_{ 1 } ... If MPC and MPS are equal, value of multiplier is, (a) 2 (b) 1 ... Question 17.

Answer 2

Answer:30

Explanation:

MPS=∆s÷∆y ...here we need to find ∆s and ∆y is 50 ...also MPS =0.6 ...on putting values in formula we get

0.6=∆s÷50

0.6×50=∆s

So ,∆s=30