MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Treatment in Partner's Capital Account-Change in PSR

At income lev...

Question

At income level of Rs. 5,000 crores, total saving is Rs. 1,000 crores. Calculate APC.

Open in App

Solution

Income= 5,000 crore rupees and total savings= 1,000 crore rupees.
Consumption = Income- Savings
= 5,000-1,000
= 4,000 crore rupees
Average propensity to consume= Consumption/Income= 4,000/5,000= 4/5

Suggest Corrections

thumbs-up

0

Similar questions

Q. If the total income increases from Rs. 5,000 crores to Rs. 6,000 crores and saving Increases from Rs. 1,000 crores tot 1,500 crores, calculate MPC.

Q. If households save Rs. 500 crores out of an additional income of Rs. 5,000 crores, then calculate MPC.

Q. The following table Illustrates the multiplier process after making an additional investment of Rs. 1,000 crores. Calculate the missing values.

	Increase in Income (Rs. Crores)	Chnaage in Consumption (Rs. Crores)	Change in Saving (Rs. Crores)
Fist Round	?	?	200
Second Round	?	640	?
Third Round	?	?	?
All other Rounds	?	?	?
Total	?	?	?

Q. The consumption function for an economy is given as: C = 200 + 0.8Y. (i) Determine the value of MPC and MPS; (ii) Autnomous Consumption; (iii) Derive the corresponding saving function; (iv) Calculate consumption at the income levels of Rs. 3,000 crores and Rs. 5,000 crores. (v) Determine the break-even level of income.
((i) MPC = 0.8; MPS =0.2; (ii) Autnomous Consumption = 1200 crows (iii) S = -200 + 0.20Y (iv) Rs. 2,600 crams and Rs. 4,200 crores; (v) Rs. 1,000 crores)

If personal disposable income is Rs. 1,000 crores and the consumption expenditure is Rs. 750 crores, calculate the average propensity to save.

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Change in Profit Sharing Ratio

ACCOUNTANCY

Watch in App

explore_more_icon

Explore more

Treatment in Partner's Capital Account-Change in PSR

Standard XII Accountancy

Join BYJU'S Learning Program

CrossIcon