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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


Team Careers360 8th Jan, 2024
Answer (1)
Team Careers360 19th Jan, 2024

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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