The value of APC is 0 8 and the national income is 4000 crores The value of savings will be ........

Economics (CUET) Determination of Income and Employment

The value of APC is 0.8 and the national income is 4000 crores. The value of savings will be

100 crores

200 crores

800 crores

500 crores

- APC (Average Propensity to Consume) is the ratio of consumption to income.

- APC is given as 0.8.

- This means consumption is 80% of the national income.

- National income is 4000 crores.

- Therefore, consumption = 0.8 * 4000 = 3200 crores.

- Savings are calculated as the difference between income and consumption.

- Savings = 4000 - 3200 = 800 crores.

?? Correct Option: 3, 800 crores

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