Question : If APC of an economy is 0.75, what should be saving it in income level of Rs.5000 crore?
Option 1: 3500
Option 2: 4000
Option 3: 3750
Option 4: 4750
Correct Answer: 3750
Solution :
Hence, Option C is correct.
Question : The value of consumption in an economy would be ____ if national income of the economy is 5000 crore and the ratio between APC and APS is 4:1.
Option 1: 5000
Option 3: 3000
Option 4: 2000
Question : The value of consumption in an economy would be ___ if national income of the economy is 4000 crore and the ratio between APC and APS is 3:1.
Option 1: 1000
Option 2: 2000
Option 4: 4000
Question : Suppose an additional investment of Rs. 6000 crore In an economy generates an additional income of Rs. 18000 crore. The value of multiplier is
Option 1: 3 .
Option 2: 6
Option 3: .33
Option 4: None of the above
Question : The saving function of an economy is given as S= -40+0.40Y. If the planned investment is Rs. 250 crore, Calculate equilibrium level of income in the economy.
Option 1: 725
Option 2: 755
Option 3: 780
Option 4: 800
Question : In an economy, the actual level of income is Rs.500 crore, whereas, the full employment level of income is Rs.700 crore. If 1/5 of the additional income is saved, calculate increase in investment required to achieve full employment level.
Option 1: 20
Option 2: 30
Option 3: 40
Option 4: 50
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