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Question : An economy is in equilibrium. Its consumption function is C= 200+0.70Y, Investment = 400. Find national income.

Option 1: 1000

Option 2: 1500

Option 3: 2000

Option 4: 2500


Team Careers360 21st Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: 2000


Solution : Y=C+I

Y= 200+0.70Y+400

0.30Y= 600

Y= 2000 crore

Hence, Option C is correct.

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