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The ratio of MPC and MPS is 4:1. The consumption at zero level of income is Rs. 40 crores. (a) Frame a consumption equation (b) Value of multiplier (c) Break-even level of income OR The consumption equation is C = 125 + 0.5Y. (a) Calculate break-even level of income. (b) Calculate investment if the equilibrium level of income is Rs. 400 crores. |
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Answer» The ratio of MPC and MPS is 4:1. The consumption at zero level of income is Rs. 40 crores. (a) Frame a consumption equation (b) Value of multiplier (c) Break-even level of income OR The consumption equation is C = 125 + 0.5Y. |
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