Question : In an economy, equilibrium level of income falls short by Rs.400 crore. Calculate the additional investment needed to achieve the equilibrium level of income, 80% of the increased income is spent on consumption.
Option 1: 70
Option 2: 80
Option 3: 90
Option 4: 100

Question

Question : In an economy, equilibrium level of income falls short by Rs.400 crore. Calculate the additional investment needed to achieve the equilibrium level of income, 80% of the increased income is spent on consumption.

Option 1: 70

Option 2: 80

Option 3: 90

Option 4: 100

Team Careers360 · Accepted Answer

Correct Answer: 80

Solution : $MPC=0.80\K=\frac{1}{1-MPC}\K=\frac{1}{1-0.80}=5\K=\frac{\Delta Income}{\Delta Investment}\ 5=\frac{400}{\Delta Investment}\ \Delta Invetsment= 80\ Hence, Option\, B\, is\, correct.$

Exams

Colleges

Predictors

Resources

Quick links

B.Tech CompanionUse Now Your one-stop Counselling package for JEE Main, JEE Advanced and BITSAT

Exams

Colleges & Courses

Predictors

Resources

Exams

Colleges

Predictors & E-Books

Resources

Engineering Preparation

Medical Preparation

Online Courses

Products

Exams

Colleges

Resources

Exams

Colleges

Predictors & Articles

Resources

Exams

Colleges

Predictors

Resources

NEET CompanionUse NowYour one-stop Counselling package for NEET, AIIMS and JIPMER

Exams

Colleges

Upcoming Events

Resources

Exams

Colleges

Resources

Quick Links

Top Streams

Specializations

Resources

Top Providers

Exams

Colleges

Resources

Diploma Colleges

Exams

Colleges

Resources

Exams

Resources

Top Courses & Careers

Colleges

Exams

Upcoming Events

Resources

Other Exams

Exams

Colleges

Top Countries

Student Visas

Exams

Top Schools

Products & Resources

NCERT Study Material

Question : In an economy, equilibrium level of income falls short by Rs.400 crore. Calculate the additional investment needed to achieve the equilibrium level of income, 80% of the increased income is spent on consumption.Option 1: 70Option 2: 80Option 3: 90Option 4: 100

Related Questions

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.

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.

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.

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.

Question : In an economy, the investment expenditure is Rs.80 crore and consumption function is C= 80+0.75Y. Calculate Equilibrium level of income.

Trending Articles/News

Sign In/Sign Up

Download the Careers360 App on your Android phone

B.Tech CompanionUse Now
Your one-stop Counselling package for JEE Main, JEE Advanced and BITSAT

NEET CompanionUse Now
Your one-stop Counselling package for NEET, AIIMS and JIPMER

Question : In an economy, equilibrium level of income falls short by Rs.400 crore. Calculate the additional investment needed to achieve the equilibrium level of income, 80% of the increased income is spent on consumption.
Option 1: 70
Option 2: 80
Option 3: 90
Option 4: 100

Question : In an economy, the investment expenditure is Rs.80 crore and consumption function is C= 80+0.75Y. Calculate
Equilibrium level of income.