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 decreased by Rs. 20 crore.
Option 1: 540
Option 2: 560
Option 3: 800
Option 4: 600
Correct Answer: 560
Solution : C= 80+0.75Y
I= 80-20= 60
Y= C+I
Y= 80+0.75Y+60
0.25Y= 140
Y= 560 crore
Hence, Option B is correct.
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.
Question : In an economy, the investment expenditure is Rs.80 crore and consumption function is C= 80+0.75Y. Calculate Equilibrium level of income.
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.
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 saving function.
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