CUET Economics - If the autonomous consumption is given as 100 and the tendency of the people to increase consumption for an increase in income is only 20%, then derive the savings function. | PYQs + Solutions

CUET Economics

Macro

Medium

$S = -100 + 0.8 Y$

$S = 100 + 0.8 Y$

$S = 100 + 0.2 Y$

$S = -100 + 0.2 Y$

✅ Correct Option: 1

Related questions:

1 June Shift 1

Slope of Consumption curve is denoted by :

29 May Shift 2

If C= X+0.6Y & Investment is Rs 1,500 Equilibrium level of income in economy would be 4050, find out the autonomous consumption.

28 May Shift 1

Arrange the following as per the theory of the 'Paradox of Thrift':

(A) Marginal Propensity to consume decreases.

(B) Amount of savings decreases.

(D) Equilibrium level of income decreases.

Choose the correct answer from the options given below:

CUET Economics PYQs