The equilibrium GDP of an economy is Rs 3000 crore, autonomous investment expenditure is Rs 300 crores and autonomous consumption expenditure is Rs 100 crore. Fined our the value of marginal propensity to consume.

We are given,

Real GDP (Y) = Rs 3000 crore
Autonomous investment (I₀) = Rs 300 crore
Autonomous consumption (α) = Rs 100 crore
We know at equilibrium,

                                       Y =α + I₀
                                             1-ß

        
 =>                              3000 = 100 + 300
                                                 1- ß
                            (1-ß) 3000 = 400
=>                     3000-3000 ß = 400
=>                            3000 ß  = 2600

=>                                    ß  = 2600   = 0.86
                                               3000  

Thus, marginal propensity to consume (ß) =0.86.