What will be the value of consumption if the value of APS = 0.3, national income is Rs 5,000 crore ?
Answer & explanation
Correct answer: option 4
The correct answer is Option 4: 3500
APS = 0.3, as, APS = 1 - APC, then APC = 0.7
APC = \(\frac{C }{Y }\)
0.7 = \(\frac{C }{5,000 }\)
C = 0.7 * 5000
C = 3500