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.
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 : The equilibrium level of income in an economy is Rs. 3000 crore. The autonomous consumption expenditure is equal to Rs.250 crore and investment expenditure is Rs. 1000 crore. Calculate consumption expenditure.
Option 1: 3000
Option 2: 1500
Option 3: 2000
Option 4: 1000
Question : The equilibrium level of income in an economy is Rs. 3000 crore. The autonomous consumption expenditure is equal to Rs.250 crore and investment expenditure is Rs. 1000 crore. Calculate saving function.
Option 1: S=250+(1+b)3000
Option 2: S=250-(1-b)3000
Option 3: S=250+(-b)3000
Option 4: S=250+(1-b)3000
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
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