Calculate Marginal Propensity to Consume from the following data about an economy which is in equilibrium:
| National income | = | 2,000 |
| Autonomous consumption expenditure | = | 200 |
| Investment expenditure | = | 100 |
CBSE OUTSIDE DELHI - SET 1 2014
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$\text{Y}=\overline{\text{C}}+\text{MPC(Y)}+\text{I}$$2000=200+\text{MPC}(2000)+100$
$2000\text{MPC}=2000-200-100$
$\text{MPC}=\frac{1700}{2000}$
$\text{MPC}=.85$
$2000\text{MPC}=2000-200-100$
$\text{MPC}=\frac{1700}{2000}$
$\text{MPC}=.85$
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