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
Correct Answer: 2000
Solution : Y= C+I
3000=C+1000
C= 2000
Hence, Option C is correct.
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 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 marginal propensity to save.
Option 1: 0.42
Option 2: 0.58
Option 3: 0.32
Option 4: 0.65
Question : In an economy, the investment expenditure is Rs. 80 crore and consumption function is C= 80+0.75Y. Calculate equilibrium level when planned investment expenditure is increased by Rs. 10 crore.
Option 1: 680
Option 2: 650
Option 3: 700
Option 4: 600
Question : In an economy, the investment expenditure is Rs. 80 crore and consumption function is C= 80+0.75Y. Calculate equilibrium level when planned investment expenditure is decreased by Rs. 20 crore.
Option 1: 540
Option 2: 560
Option 3: 800
Option 2: 780
Option 3: 620
Option 4: 720
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