In an economy aggregate demand function is : AD = 160 crore + 0.8 Y
autonomous consumption =100 crore the value of autonomous investment and MPS in the economy are _____________ and ___________ respectively

Dear student
As we know, AD = C + I 
C = c + b Y
Here C is consumption; c = autonomous consumption, b is MPC ,Y is income
so, according to given value: Autonomous consumption is 100 crore, therefore remaining value out of 160 crore i.e 60 crore (160 -100) crore is investment.
AD = 160 crore + 0.8 Y
     = 100 + 0.8 Y + 60
MPC is 0.8
MPC + MPS = 1
O.8 +MPS = 1
MPS = 1 - 0.8
MPS = 0.2
AUTONOMOUS INVESTMENT IS 60 CRORES.
the value of autonomous investment  and MPS in the economy  are Rs 60 crores and 0.2 respectiviely.
Regards
      

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