What will be the value of savings, if AP

CUET Preparation Today

Start Free Mocks

Home Questions UM6TZE5VWN

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Determination of Income and Employment

Question:

What will be the value of savings, if APC = 0.6, national income = 15,000?

Options:

9,000

4,000

1,000

None of the above

Correct Answer:

None of the above

Explanation:

APC = 0.6, as, APS = 1 - APC, then APS = 0.4

APS = \(\frac{S }{Y }\)

0.4 = \(\frac{S }{15,000 }\)

S = 0.4 * 15,000

C = 6,000