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

Question : In an economy, equilibrium level of income falls short by Rs.400 crore. Calculate the additional investment needed to achieve the equilibrium level of income, 80% of the increased income is spent on consumption.

Option 1: 70

Option 2: 80

Option 3: 90

Option 4: 100

Question : In an economy, the investment expenditure is Rs. 80 crore and consumption function is C= 80+0.75Y. Calculate equilibrium level when planned investment expenditure is increased by Rs. 10 crore.

Option 1: 680

Option 2: 650

Option 3: 700

Option 4: 600

Question : An economy, the equilibrium level of income is Rs.12500. The ratio of marginal propensity to consume and marginal propensity to save is 4:1. Calculate the additional investment needed to reach a new equilibrium level of income of Rs.20,000 crore.

Option 1: 600

Option 2: 800

Option 3: 1200

Option 4: 1000

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 : The equilibrium level of income in an economy is Rs. 3000 crore. The autonomous consumption expenditure is equal to Rs.250 crore and investment expenditure is Rs.1000 crore. Calculate marginal propensity to save.

Option 1: 0.42

Option 2: 0.58

Option 3: 0.32

Option 4: 0.65