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NextQ46

Suppose consumption function for an economy is C = 80 + 0.75 Y (where C = consumption function and Y = national income) and the investment expenditure is Rs. 200 crore. Estimate the following : (a) Equilibrium level of income (b) Values of consumption and saving at equilibrium level of income

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Question 45

Read the following statements : Assertion (A) and Reason (R). Choose the correct alternative given below. Assertion (A) : Rich people have lower Marginal Propensity to Consume (MPC) as compared to poor people. Reason (R) : Consumption curve makes an intercept on the y-axis at a point above the origin. Alternatives :

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