Calculate investment expenditure from the following data about an economy which is in equilibrium:
National income = 1000
Marginal propensity to save = 0.20
Autonomous consumption expenditure = 100
Marginal propensity to save = 0.20
Autonomous consumption expenditure = 100
CBSE OUTSIDE DELHI - SET 2 2014
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$\text{Y}=\overline{\text{C}}+\text{MPC(Y)}+\text{I}$$1000=100+(1-0.2)1000+\text{I}$
$\text{I}=1000-100-800=100.$
$\text{I}=1000-100-800=100.$
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