The consumption function of an economy is $C = 75 + 0.75 Y .$ What will be the change in income, when consumption changes by Rs 300 crores?

OR

Complete the table:

$\begin{matrix} Income & C = 75 + 0.75 Y & Savings & APC & APS 100200300400 \end{matrix}$

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Solution

$M P C = 0.75$

Change in consumption = Rs 300 crores

MPC = Change in sonsumption / change in income

$0.75 = 300 / Δ Y$

Change in income is Rs 400 crores.

OR

$\begin{matrix} Income & C = 75 + 0.75 Y & Savings & APC & APS 100 & 150 & - 50 & 1.5 & - 0.5 200 & 225 & - 25 & 1.125 & - 0.125 300 & 300 & 0 & 1 & 0 400 & 375 & 25 & 0.9375 & 0.00625 \end{matrix}$

$S = Y - C$

$A P C = C / Y$

$A P S = 1 - A P C$

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The consumption function of an economy is C=75+0.75Y. What will be the change in income, when consumption changes by Rs 300 crores? OR Complete the table: IncomeC = 75 + 0.75 YSavingsAPCAPS100200300400

MPC=0.75 Change in consumption = Rs 300 crores MPC = Change in sonsumption / change in income 0.75=300/ΔY Change in income is Rs 400 crores. OR IncomeC = 75 + 0.75 YSavingsAPCAPS100150−501.5−0.5200225−251.125−0.125300300010400375250.93750.00625 S=Y−C APC=C/Y APS=1−APC

The consumption function of an economy is $C = 75 + 0.75 Y .$ What will be the change in income, when consumption changes by Rs 300 crores?

OR

Complete the table:

$\begin{matrix} Income & C = 75 + 0.75 Y & Savings & APC & APS 100200300400 \end{matrix}$