Calculate autonomous consumption expenditure from the following data about an economy which is in equilibrium.
National income= 1200
Marginal propensity to save= 0.20
Investment expenditure= 100
CBSE DELHI - SET 2 2014
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$\text{Y} = \overline{\text{C}} + \text{MPC}(\text{Y}) + \text{I}$$1200= \overline{\text{C}} + (1-0.2)1200 +100$
$ \overline{\text{C}}=1200-960-100=140$
$ \overline{\text{C}}=1200-960-100=140$
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