An economy is in equilibrium. Find Marginal Propensity to Consume from the following:
National income = 2000
Autonomous consumption = 400
Investment expenditure = 200
National income = 2000
Autonomous consumption = 400
Investment expenditure = 200
CBSE DELHI - SET 3 2015
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$\text{Y}=\overline{\text{C}} + {\text{MPC(Y)}} + \text{I}$$\text{2000}=400+\text{MPC(2000)}+200$
$\text{MPC}=\frac{2000-400-200}{2000}=0.7$
$\text{MPC}=\frac{2000-400-200}{2000}=0.7$
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