Question
Complete the following table:
| Income (Rs) | Consumption expenditure (Rs) | Marginal Propensity to Save | Average Propensity to Save |
| 0 | 80 | ||
| 100 | 140 | 0.4 | - |
| 200 | - | - | 0 |
| - | 240 | - | 0.20 |
| - | 260 | 0.8 | 0.35 |
Solution
| Income (Y) | Consumption Expenditure (C) | Marginal Propensity to Save | Average Propensity to Save (S÷Y) | Savings (Y-C) | Marginal Propensity to Consume |
| 0 | 80 | -80 | |||
| 100 | 140 | 0.4 | -0.4 | -40 | 0.6 |
| 200 | 200 | 0.4 | 0 | 0 | 0.6 |
| 300 | 240 | 0.6 | 0.20 | 60 | 0.8 |
| 400 | 260 | 0.8 | 0.35 | 140 | 0.2 |
