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

Question

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 2: 4000
Option 3: 3000
Option 4: 2000

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Answer 1

Correct Answer: 3750

Solution : $APC+APS=1$

$APC= 0.75$

$APS= 1-0.75=0.25$
$APS=\frac{Savings}{Income}$

$0.25=\frac{Savings}{5000}$

$Savings= 3750$
Hence, Option C is correct.

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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

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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: 5000Option 2: 4000Option 3: 3000Option 4: 2000

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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

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 2: 4000
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 3: 3000
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