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Question : In an economy, the investment expenditure is Rs.80 crore and consumption function is C= 80+0.75Y. Calculate 
Equilibrium level of income.

Option 1: 640

Option 2: 700

Option 3: 840

Option 4: 900


Team Careers360 18th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: 640


Solution : Y=C+I

Y= 80+0.75Y+80

0.25Y= 160

Y= 640

Hence, Option A is correct.

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