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NextQ115

Suppose for two imaginary economies A and B, the value of Marginal Propensity to Consume (MPC) stands at 0.8 and 0.6 respectively. For both the economies, Autonomous Consumption (c-bar) = Rs. 400 crore and Investment Expenditure (I) = Rs. 2,000 crore. Calculate the following : (a) Break-even level of income for Economy A. (b) Equilibrium level of income for Economy B.

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Question 114

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

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