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NextQ17

'Consumption function curve of an involuntary unemployed workers start from some positive level on Y-axis even at zero level of Income.' Justify the given statement.

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Question 16

"In an economy, the autonomous consumption is Rs. 100 and Marginal Propensity to Consume (MPC) is 0.6. If the equilibrium level of Income is Rs. 2,000, then the autonomous investment is Rs. 300." Justify the statement with valid calculation. An Economy is in equilibrium, calculate the Marginal Propensity to Save (MPS) from the following : (i) National Income (Y) = Rs. 4,400 (ii) Autonomous Consumption (C) = Rs. 1,000 (iii) Investment Expenditure (I) = Rs. 70

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