plzz ans these two qus fast...
Dear Student
Answer 5. Your question seems to be incomplete. For solving this question, amount of investment expenditure is required must.Recheck your question and please be a little specific so that we can provide you with some meaningful help. Looking
forward to hear from you again!
Answer 6.
Y = Rs 50 crore S = Rs 5 crore
Hence, C = Y-S
= 50-5=Rs 45 crore
Average Propensity to Consume :
C = Rs. 45 crore
APC = C / Y = 45 / 50 = 0.90
When income and savings rise:
Y = Rs 60 crore S=Rs 9 crore
Average Propensity to Consume (APC) = C / Y
Where C= 60-9 = Rs. 51 crore
C / Y = 51 / 60 = 0.85
∆S ( change in savings ) = 9-5 = Rs 4 crore
∆Y( change in income) = 60-50 = Rs 10 crore
Marginal Propensity to Save (MPS )= ∆S / ∆Y = 4 / 10 = 0.40
Regards
Answer 5. Your question seems to be incomplete. For solving this question, amount of investment expenditure is required must.Recheck your question and please be a little specific so that we can provide you with some meaningful help. Looking
forward to hear from you again!
Answer 6.
Y = Rs 50 crore S = Rs 5 crore
Hence, C = Y-S
= 50-5=Rs 45 crore
Average Propensity to Consume :
C = Rs. 45 crore
APC = C / Y = 45 / 50 = 0.90
When income and savings rise:
Y = Rs 60 crore S=Rs 9 crore
Average Propensity to Consume (APC) = C / Y
Where C= 60-9 = Rs. 51 crore
C / Y = 51 / 60 = 0.85
∆S ( change in savings ) = 9-5 = Rs 4 crore
∆Y( change in income) = 60-50 = Rs 10 crore
Marginal Propensity to Save (MPS )= ∆S / ∆Y = 4 / 10 = 0.40
Regards