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
Correct Answer: 5080
Solution : S=I
-40+0.5 Y=2500
0.5Y=2540
Y= 5080
Hence, Option A is correct.




