Please Solve this question..
Dear Student,
Formulae Used:
Savings = Income - Consumption
Marginal propensity to save = ΔS/ΔY, where ΔS is the Change in savings and ΔY is the change in income in the economy.
Marginal propensity to consume = ΔC/ΔY, where ΔC is the Change in consumption and ΔY is the change in income in the economy.
Average propensity to save = Savings / Income
MPC+MPS=1
Regards
Income(Y) (Rs.) |
Consumption Expenditure(C) (Rs.) |
Marginal Propensity to Save (ΔS/ΔY) (Rs.) |
Average Propensity to Save (S/Y) (Rs.) |
Savings(S) (Rs.) |
Marginal Propensity to Consume (ΔC/ΔY) (Rs.) |
---|---|---|---|---|---|
0 | 80 | _ | _ | -80 | _ |
100 | 140 | 0.4 | -0.4 | -40 | 0.6 |
200 | 200 | 0.4 | 0 | 0 | 0.6 |
300 | 240 | 0.6 | 0.2 | 60 | 0.4 |
400 | 260 | 0.8 | 0.35 | 140 | 0.2 |
Formulae Used:
Savings = Income - Consumption
Marginal propensity to save = ΔS/ΔY, where ΔS is the Change in savings and ΔY is the change in income in the economy.
Marginal propensity to consume = ΔC/ΔY, where ΔC is the Change in consumption and ΔY is the change in income in the economy.
Average propensity to save = Savings / Income
MPC+MPS=1
Regards