CH 3.3 : Numerical (by Dr.R.Mohan)

If the value of MPS is 0.25, what is the value of multiplier?

If the value of MPC is 0.9, find out value of multiplier.

What is the value of MPC, when MPS = 0?

If APC = 0.75, how much is APS?

If income is Rs. 500 and savings are Rs. 100, calculate APC.

The level of income, in an economy, increases from Rs. 20,000 crores to Rs. 70,000 crores, and as a result the level of consumption increases from Rs. 15,000 crores to Rs. 45,000 crores. Calculate the MPC.

Using the consumption function: C = c + b(Y), calculate saving at income of Rs. 2,000 crores, if autonomous consumption is Rs. 150 crores and 40% of additional income is consumed.

The saving function is given as: S = - 200 + 0.4 (Y), calculate consumption expenditure when income in the economy is Rs. 5,000 crores.

A government shows primary deficit of Rs. 4,400 crores. The revenue expenditure as interest payment in Rs. 400 crore. How much is the fiscal deficit?

If national income increases by R500 million as a result of an investment of R200 million, what is the value of the multiplier?