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 : The saving function of an economy is given as S= -40+0.40Y. If the planned investment is Rs. 250 crore. Calculate aggregate demand at income of Rs. 400 crore.

Option 1: 650

Option 2: 600

Option 3: 725

Option 4: 800

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

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 4: 600