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.
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=-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 : 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
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
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