Question : On the basis of consumption function: C=100+0.8Y. Determine saving at the income level of Rs.800.
Option 1: 80
Option 2: 60
Option 3: 100
Option 4: 120

Question

Question : On the basis of consumption function: C=100+0.8Y. Determine saving at the income level of Rs.800.

Option 1: 80

Option 2: 60

Option 3: 100

Option 4: 120

Team Careers360 · Accepted Answer

Correct Answer: 60

Solution : $C=100+0.8Y$

$S=-100+0.2(800)$

$S=60$

$Hence, Option\, B\, is\, correct.$

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Question : On the basis of consumption function: C=100+0.8Y. Determine saving at the income level of Rs.800.Option 1: 80Option 2: 60Option 3: 100Option 4: 120

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Question : On the basis of consumption function: C=100+0.8Y. Determine saving at the income level of Rs.800.
Option 1: 80
Option 2: 60
Option 3: 100
Option 4: 120

Question : On the basis of consumption function: C=120+0.6Y. Determine saving at the income level of Rs.800.
Option 1: 100
Option 2: 150
Option 3: 250
Option 4: 200

Question : If MPC is four times MPS and consumption at zero level of income is 80 crore. Derive the saving function.
Option 1: S=80+0.8Y
Option 2: S=80-0.8Y
Option 3: S= -80+0.2Y
Option 4: S= -80+0.8Y

Question : On the basis of consumption function: C=180+0.6Y. Determine consumption at the income level of Rs.500.
Option 1: 500
Option 2: 480
Option 3: 300
Option 4: 600

Question : On the basis of consumption function: C=20+0.6Y. Determine consumption at the income level of Rs.600.
Option 1: 280
Option 2: 300
Option 3: 380
Option 4: 400

Question : If MPC is four times MPS and consumption at zero level of income is 50 crore derive the consumption function.
Option 1: C=50+0.2Y
Option 2: C=50+0.8Y
Option 3: C=50-0.2Y
Option 4: C=50-0.8Y