• # question_answer Find National Income from the following: Autonomous Consumption = Rs. 100 Marginal propensity to consume = 0.60 Investment = Rs. 200

 Given: Autonomous Consumption (a) = 100 MPC (b) = 0.60 Investment (I) = 200 $\therefore$ Income (Y)$=a+bY+I$ $=100+0.6Y+200$ $\Rightarrow$   $(Y-0.6)=100+200=300$ $\Rightarrow$   $Y\text{ }\left( 0.4 \right)\text{ }=\text{ }300$ $\Rightarrow$   $Y=300\times \frac{10}{4}$ $\therefore$      $Y=Rs.\text{ }750$ Therefore National Income is Rs 750.