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: 780
Option 3: 620
Option 4: 720

Question

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: 780

Option 3: 620

Option 4: 720

Team Careers360 · Accepted Answer

Correct Answer: 680

Solution : I= 80+10= 90

Y= 80+0.75Y+90

0.25Y= 170

Y= Rs. 680 crore

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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: 680Option 2: 780Option 3: 620Option 4: 720

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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: 780
Option 3: 620
Option 4: 720

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