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1.An economy is in equilibrium. Find Marginal Propensity to Consume from the following: National Income = 2000 Autonomous Consumption = 400 Investment Expenditure = 200
1.An economy is in equilibrium. Find Marginal Propensity to Consume from the following: National Income = 2000 Autonomous Consumption = 400 Investment Expenditure = 200 2. Suppose that consumption equals C = 100 + 0.75 Y, and investment equals I = 50 and Y = C + I. Find (i) The equilibrium level of income (ii) The level of consumption at equilibrium, and (iii) The level of saving at equilibrium 3. If marginal propensity to consume is 0.9, what is the value of multiplier? How much investment is needed if national income increases by Rs 5,000 crore
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