Question

The value of mpc is 0.6 and initial income in the economy is ₹100 crores. prepare a schedule showing income, consumption and saving. also show the equilibrium level of income by assuming autonomous investment of ₹ 80 crores.

Answer 1

Mpc=0.6
Initial income=100cr.
Find equilibrium level of income by assuming autonomous investment of 80 cr.

Answer 2

In the given way one can calculate equilibrium level of income by assuming autonomous investment of ₹ 80 crores.