Calculate investment expenditure from the following date about an economy which is in equilibrium: National income = Rs. 1,000 Marginal propensity to save = Rs. 0.25 Autonomous consumption expenditure = Rs. 200 (Investment Expenditure = 50)
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If MPS= 0.25, then
MPC= 1- MPS= 1- 0.25= 0.75.
Consumption Function is C = 200+ 0.75 Y where Y in the income in the economy.