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NextQ110

Assuming for a hypothetical economy : (i) Autonomous Consumption Expenditure (c-bar) = Rs. 250 crore (ii) Marginal Propensity to Save (MPS) = 0.2 (iii) Autonomous Investments (I_0) = Rs. 200 crore Estimate the Break-even level of Income and Equilibrium level of Income, on the basis of information given above.

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Question 109

Read the following statements carefully : Statement 1 : Marginal Propensity to Consume (MPC) refers to the consumption per unit of income. Statement 2 : As the income increases, the proportionate increase in the level of consumption is always more than the increase in the level of income. In the light of the given statements, choose the correct option from the following :

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