The consumption curve makes an intercept of Rs. 60 crores on the Y-axis. MPC:MPS can be...

 

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The consumption curve makes an intercept of Rs. 60 crores on the Y-axis. MPC:MPS can be expressed as 1:3, then derive the saving and consumption function. Also determine the level of income, when saving becomes zero? (Saving Function: S = -60 +0.75 (Y); Consumption Function: C = 60+ 0.25 09; Saving will become zero at income of Rs. 80 acres) The consumption curve makes an intercept of Rs. 60 crores on the Y-axis. MPC:MPS can be expressed as 1:3, then derive the saving and consumption function. Also determine the level of income, when saving becomes zero? (Saving Function: S = -60 +0.75 (Y); Consumption Function: C = 60+ 0.25 09; Saving will become zero at income of Rs. 80 acres)

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Autonomous consumption Rs 60 crores MPCMPS 13 Since MPCMPS 1 MPC 3 MPC 1 4 MPC 1 MPC 14 025 Consumpt... View the full answer