Question : In an economy, the investment expenditure is Rs.80 crore and consumption function is C= 80+0.75Y. Calculate
Equilibrium level of income.
Option 1: 640
Option 2: 700
Option 3: 840
Option 4: 900
Answer (1)
25th Jan, 2024
Correct Answer: 640
Solution : Y=C+I
Y= 80+0.75Y+80
0.25Y= 160
Y= 640
Hence, Option A is correct.
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