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Estimate the value of ex-ante AD, when autonomous investment and consumption expenditure (A) is Rs 50 crores, and MPS is 0.2 and level of income is Rs 300 crores.

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MPC=1-MPS MPC = 1-0.2 MPC = 0.8
AD=C+1
AD=A+by
AD= 50 + 0.8(300)
AD = Rs 290 Crores

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