Suppose in an imaginary economy, autonomous consumption = Rs. 500 crore and marginal propensity to consume = 0.8. The saving function for the economy would be ________ . (Choose the correct alternative to fill in the blank):
Suppose in an imaginary economy, autonomous consumption = Rs. 500 crore and marginal propensity to consume = 0.8. The saving function for the economy would be ________ . (Choose the correct alternative to fill in the blank):
Show Hint
- \(500 + 0.8Y\)
- \(-500 + 0.8Y\)
- \(500 + 0.2Y\)
- \(-500 + 0.2Y\)
The Correct Option is D
Solution and Explanation
Top Questions on Money and Inflation
- CBSE CLASS XII - 2024
- Economics
- Money and Inflation
- \[ \begin{array}{|c|l|r|} \hline \textbf{S.No.} & \textbf{Items} & \textbf{Amount (in ₹ crore)} \\ \hline (i) & \text{Wages and Salaries} & 2,000 \\ \hline (ii) & \text{Rent and Interest} & 800 \\ \hline (iii) & \text{Corporate Tax} & 500 \\ \hline (iv) & \text{Undistributed Profit} & 300 \\ \hline (v) & \text{Dividend} & 200 \\ \hline (vi) & \text{Depreciation} & 150 \\ \hline (vii) & \text{Net Factor Income from Abroad} & -50 \\ \hline \end{array} \]
- CBSE CLASS XII - 2024
- Economics
- Money and Inflation
Read the following statements: Assertion (A) and Reason (R). Choose the correct alternative from those given below:
Assertion (A): The maximum value of Marginal Propensity to Save (MPS) can be unity.
Reason (R): At the break-even level of income, savings are zero.- CBSE CLASS XII - 2024
- Economics
- Money and Inflation
Read the following statements: Assertion (A) and Reason (R). Choose the correct alternative from those given below:
Assertion (A): The equilibrium level of income is determined when ex-ante spending and ex-ante output are equal.
Reason (R): The equilibrium level of income may or may not be the same as the full employment level of output.- CBSE CLASS XII - 2024
- Economics
- Money and Inflation
Study the following figure carefully and choose the correct alternative to fill in the blank:
- CBSE CLASS XII - 2024
- Economics
- Money and Inflation
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Do you agree with the given statement? Give valid reasons in support of your answer.- CBSE CLASS XII - 2024
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“Accommodating transactions are undertaken to maintain stability in the Balance of Payments Account.”
Justify the given statement with a valid explanation.- CBSE CLASS XII - 2024
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Suppose in an imaginary economy, autonomous consumption = ₹ 500 crore and marginal propensity to consume = 0.8. The saving function for the economy would be _________ .
- CBSE CLASS XII - 2024
- Economic History
Read the following statements carefully:
Statement 1: Money is a commodity which is generally accepted as a medium of exchange.
Statement 2: Money solved the problem of double coincidence of wants.- CBSE CLASS XII - 2024
- Cost Function and Marginal Cost