What will be the value of autonomous consumption when the economy is in equilibrium and income = Rs 7,000 crore, marginal propensity to save = 0.1  and investment expenditure is Rs 300 crore?

400

Economy is in equilibrium, when Y = C + I,

Y =  (c̅ + bY) + I

7,000 = c̅  + 0.9( 7,000) + 300  (Note:- MPC = 1 - MPS i.e. MPC = 1 - 0.1 = 0.9)

c̅ = 7,000 - 6,300 - 300

c̅ = 400