Question : S=-20+0.25 Y Is the saving function in an economy. Investment expenditure is 4000. Calculate the level of income.
Option 1: 20000
Option 2: 16080
Option 3: 15080
Option 4: 16000

Question

Question : S=-20+0.25 Y Is the saving function in an economy. Investment expenditure is 4000. Calculate the level of income.

Option 1: 20000

Option 2: 16080

Option 3: 15080

Option 4: 16000

Team Careers360 · Accepted Answer

Correct Answer: 16080

Solution : Equilibrium,

S=I

-20+0.25Y=4000

0.25Y= 4020

Y= 16080

Hence, Option B is correct.

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Question : S=-20+0.25 Y Is the saving function in an economy. Investment expenditure is 4000. Calculate the level of income.Option 1: 20000Option 2: 16080Option 3: 15080Option 4: 16000

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Question : S=-20+0.25 Y Is the saving function in an economy. Investment expenditure is 4000. Calculate the level of income.
Option 1: 20000
Option 2: 16080
Option 3: 15080
Option 4: 16000

Question : S=-40+0.5 Y Is the saving function in an economy. Investment expenditure is 2500. Calculate the level of income.
Option 1: 5080
Option 2: 6500
Option 3: 4100
Option 4: 4320

Question : S=-50+0.3Y Is the saving function in an economy. Investment expenditure is 450. Calculate the level of income.
Option 1: 1500
Option 2: 2000
Option 3: 1750
Option 4: 620

Question : In a two sector economy, the saving function is given as S=-10+0.4Y and investment function is expressed as I=-4+0.1Y. Calculate equilibrium level of income?
Option 1: 20
Option 2: 30
Option 3: 15
Option 4: 10

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 saving function of an economy is given as S=-40+0.5Y. Calculate the total increase in income if investment expenditure increases by Rs. 600 crore.
Option 1: 1100
Option 2: 1200
Option 3: 1300
Option 4: 1400