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
Correct Answer: 1500
Solution : Equilibrium,
S=I
-50+0.3Y=400
0.3Y= 450
Y= 1500
Hence, Option A is correct.




