Calculate investment expenditure from the following data about an economy which is in equilibrium:
National income = 1000
Marginal propensity to save = 0.25
Autonomous consumption expenditure = 200
National income = 1000
Marginal propensity to save = 0.25
Autonomous consumption expenditure = 200
CBSE DELHI - SET 1 2014
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$\text{Y} = \overline{\text{C}} + \text{MPC}(\text{Y}) + \text{I}$$1000= 200 + (1-0.25)1000 + \text{I}$
$\text{I} = 1000 - 200 - 750$
$\text{I} = 50.$
$\text{I} = 1000 - 200 - 750$
$\text{I} = 50.$
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