Find investment from the following

CBSE Class 12 CBSE Class 12 Economics
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1

Find investment from the following:
National Income = Rs 600
Autonomous consumption =Rs 150
Marginal Propensity to Consume = 0.70

2

Here, Y = Rs 600, C = Rs 150, MPC or b = 0.70
We know that,
Y = C + S or Y - C = S or S =600 - ($\overline{S}$ + bY) =600 - (150 + 0.7 x 600) =
600 -(150 + 420) =600 - 570 = Rs 30
As, l = S = Rs 30 (At equilibrium level of income)
Hence, Investment = Rs 30