An economy is in equilibrium. Calculate the Investment Expenditure from the following:
National Income = 800
Marginal Propensity to Save = 0·3
Autonomous Consumption = 100
National Income = 800
Marginal Propensity to Save = 0·3
Autonomous Consumption = 100
CBSE OUTSIDE DELHI - SET 1 2015
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Y = $\overline{\text{C}}$ + MPC (Y) + I.
800 = 100 + (1 – 0.3) 800 + I.
I = 800 – 100 – 560 = 140.
800 = 100 + (1 – 0.3) 800 + I.
I = 800 – 100 – 560 = 140.
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