If MPC -0-4 and - Y -1-000- - S will be -A- Rs 600B- Rs 400C- Rs 500D- Rs 250

The correct option is A Rs 600Given, MPC = 0.4, ∆Y = 1,000...(1) MPC = ∆C∆Y...(2) Replacing values of (1) in (2), 0.4 = ∆C100 ∆C = 400 ∆S= ∆Y ∆C= 1,000 40 ...

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

Byju's Answer

Standard XII

Economics

The Multiplier Mechanism

If MPC =0.4 a...

Question

If MPC = 0.4 and $Δ Y$ = 1,000, $Δ S$ will be .

Rs 600

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Rs 400

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Rs 500

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Rs 250

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A Rs 600
Given, MPC = 0.4, $Δ Y$ = 1,000...(1)

MPC = $\frac{Δ C}{Δ Y}$ ...(2)

Replacing values of (1) in (2),
0.4 = $\frac{Δ C}{100}$
$Δ C$ = 400

$Δ S$ = $Δ Y$ - $Δ C$ = 1,000 - 400 = Rs 600

Suggest Corrections

Similar questions

If MPC = 0.4 and $Δ Y = 1, 000,$ what will be $Δ S$ ?

Q. The government makes an additional investment of when MPC = 0.5 and the increase in income is Rs 1,000.

In an economy, the government makes some additional investment. Find its value when MPC = 0.5 and increase in income = Rs 1,000.

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.

If MPS is 0.6, what will be $Δ S$ when income increases by Rs 100?

Join BYJU'S Learning Program

If MPC = 0.4 and ΔY = 1,000, ΔS will be .

The correct option is A Rs 600Given, MPC = 0.4, ΔY = 1,000...(1) MPC = ΔCΔY...(2) Replacing values of (1) in (2), 0.4 = ΔC100 ΔC = 400 ΔS= ΔY- ΔC= 1,000 - 400 = Rs 600

If MPC = 0.4 and $Δ Y$ = 1,000, $Δ S$ will be .

The correct option is A Rs 600
Given, MPC = 0.4, $Δ Y$ = 1,000...(1)

MPC = $\frac{Δ C}{Δ Y}$ ...(2)

Replacing values of (1) in (2),
0.4 = $\frac{Δ C}{100}$
$Δ C$ = 400

$Δ S$ = $Δ Y$ - $Δ C$ = 1,000 - 400 = Rs 600