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Economics
Macro Economics: Determination of Income and Employment
What will be the savings if autonomous consumption is Rs 100 and MPC = 0.6 at Rs 4000 level of income?
1500
2400
3500
2300
S = - c̅ + (1-b)Y
S = -100 + ( 1 - 0.6) 4000
S = -100 + ( 0.4 ) 4000
S = -100 + 1600
S = 1500